Payday loans have become a lot more accessible to people in a few different countries and with that it’s important people know when they should use a payday loan. The common rule is that if you absolutely don’t need the money before your next payday then you shouldn’t take out a payday loan. I believe this saying holds a lot of truth and you’re only asking for trouble if you take out a payday loan without having a real strong need for the money before your next payday. Before you can determine when a payday loan is useful you should understand what a payday loan is and we’ll quickly discuss that right now.
A payday loan is a loan that almost anyone can apply for, pending you’re over the age of eighteen and have a steady income of at least $1000 monthly. If you can meet those two requirements then you’re basically able to get a payday loan at any time you desire on the internet. The payday loan takes a few minutes to apply for and then you simply wait up to twenty four hours and you’ll know whether you’ve been approved for the loan or not. If you have been approved for the loan then you usually get the money quickly, quickly meaning anywhere from two to twenty four hours. The important part to understand isn’t what’s written though, although it’s also important to remember the stuff written above the golden rules you need to remember is that payday loans have hefty fees. You’ll generally pay anywhere from 10-20% in fees and interest for taking out a payday loan, and that’s if you pay the loan off in full on the due date which is the next time you’re paid. If you need to renew the loan then you’ll need to pay another 10-20% in interest and fees, this is where people begin to spiral downhill and end up in more debt then they started in. It’s important to only get a payday loan when you need one, and now that you know a little bit about payday loans we’ll briefly look at some of the times you would need a payday loan:
- Unexpected car mishaps that need repaired immediately
- Bills that need paid immediately like water, electricity, etc
- If short on money to pay for the needed necessities
There are some other things associated with when you should get a payday loan, but for the most part just remember that you only need one if it’s vital to pay something before your next payday. Thousands have been in the predicament where they’ve needed money so there is always a chance it can happen to you, and if it ever does don’t be shy about getting the loan you need. Some people feel almost guilty for taking the loans, but you’re being charged fees so don’t feel guilty or embarrassed about getting a payday loan when you need the help financially.