Payday Loans Can Be Lifesavers When Used Responsibly

As Henry Wadsworth Longfellow said in his poem Allspirit, “Into each life, some rain must fall,” meaning that everyone has those days when things just do not go right, when the unexpected and disappointing happen. You may have always paid your bills on time, but then one day your car breaks down unexpectedly or your water heater floods your home and you just do not have enough money to pay for the resulting damages. What can you do?

What is a payday loan?

Payday loans, which allow you to get a cash advance on your next paycheck, can be the answer in trying times when the money in your wallet just won’t stretch far enough to cover your bills or an emergency expense. However, because they are loans that you will have to pay interest on, they should not be taken out for frivolous reasons. Here are a few tips on how to use payday loans responsibly.

Consider These Tips Before Getting a Loan

  • Is what you need the money for really a need, or rather a want? If the reason you want to take a payday loan out is not for a true necessity such as for a car repair or for an unexpected medical cost, you should probably not borrow the money. Instead, you should wait until you can afford to pay for the item or service with your next paycheck.
  • Payday loans are a good idea if you are in danger of being charged expensive penalty fees on other bills that you may have, and you just need some cash to make those payments until you get your next paycheck.
  • A payday loan is also perfect for a person who does not have any credit cards or has a less than perfect credit history. Because payday loans are secured against your next paycheck, your past credit history is not a consideration as to whether you are able to get one or not.
  • Before taking out a payday loan, you should be aware that it will be due within a week or two or whenever your next paycheck is issued. Although you may be able to borrow more money than you actually need with a payday loan, you should resist the urge to do so, as you will be paying it and any fees, which can be relatively high, back very quickly.

For anyone who is suddenly in need of a quick infusion of cash to make it through the month, payday loans can be a great stopgap measure. Because very few other loans are available so quickly, a payday loan may be the only way a person can handle a crisis that requires an immediate financial solution, especially if he or she does not have a credit card.

But really it is probably just another debt trap. Try negotiating with the company you owe money to and extend your payment options.


  1. Ben Johnson says

    I would agree that payday loans have their place in the market, they certain serve a purpose. For example if your car breaks down and you need it for work but you don’t have enough to pay for it.

    However, I do believe that they’ve been marketed towards those people who are more vulnerable in the past.

    Used wisely though, they do have their place, yes.


  2. Trudy W. says

    You just have to know how to use everything that is available to get you over any financial gliches, but it is a question of knowing which to use in your own particular circumstances and I know that a lot of people don’t. I think payday loan advertising makes them sound brilliantly innocuous and friendly, but read the interest rates and consider them as really short term if absolutely necessary as Iain says. A payday loan wouldn’t be appropriate for me, but I use 0% finance cards for borrowing and spending at the moment which wouldn’t be right for everyone.
  3. Mariya says

    Payday loans have become an alternative option to full fill financial problem that get salary late and not on date. it can be said that payday loan is a great life saver for those people. You have written nice points on things which needs to be consider before apply for payday loans.
  4. David Warner says

    I read your full post in this section and i realize that payday loans are only one option that can remove my financial problem in the mid of the months.
  5. Taylor says

    Yes, I agree with you that payday loans are very helpful in the times of financial crisis. Because, it is approved instantly by which borrower can get rid of their instant financial crisis. This is the main reason more and more people applying for payday loans.

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