Payday Advice
Photo courtesy of CJ Schmit via Flickr
Most people’s payday advice is that you should always have emergency savings to cover unexpected expenses in between paychecks, but the truth is that even the most responsible budgeters experience the occasional financial meltdown. If you’re in a bind because you don’t have a way to cover emergency costs, don’t hesitate to take our payday advice and consider getting a payday loan to tide you over till your next paycheck. Sure, the interest rates of payday loans are high, but no harm can be done as long as you pay your loan back on your next payday. And considering how expensive it is to bounce a check, pay late payment fees, and cover overdraft charges, payday loans are actually a pretty good deal.
Payday Advice: When to Get a Payday Loan
If you have a large purchase coming up or some unexpected costs arose and you have no way to cover them, our payday advice is that a cash advance could be a useful resource. As long as you borrow a reasonable amount of money and pay it back as soon as you get paid, payday loans are convenient and reasonable.
Basically, a payday loan could be compared to a spare tire. It will get you where you need to go, but it’s not a permanent solution. Likewise, a payday loan will get you out of a financial pickle, but it’s not something that you can rely on permanently, as a solution to your financial woes. Payday loans are not long-term debt management tools, but if all you’re looking for is a quick solution to your financial problems, getting a payday loan might be a good move for you.
How Often You Should Get a Payday Loan
The best payday advice to follow is that you should only get a payday loan occasionally. Payday loans are not meant to be ongoing financial resources, but they can come in handy when you need to pay for unexpected bills. You can get a payday loan whenever you need extra money in between paychecks. Just make sure that you can afford to pay the loan amount plus the fee when your next payday comes. Although it might be tempting to borrow more than you need for the sake of having some extra cash on hand, borrow just as much as you need to help your situation to avoid financial problems later.
What Happens When You Can’t Repay Your Payday Loan
This problem can be prevented if you only borrow what you can afford to repay later. But if the loan provider tries to automatically withdraw the loan amount from your account on your payday and the funds aren’t there, your bank will charge you a non-sufficient funds (NSF) fee and possibly a returned check fee. So, in addition to being responsible for the full amount of your payday loan, you’ll also have to cover these extra expenses. If you still aren’t able to repay the loan, your account might be turned over to a collection agency. The bottom line is that you should take every step possible to fulfill your responsibility to pay off your payday loan right away.
