Learning About Finance Topics

Three Situations When A Payday Loan May Be A Good Idea

by Laurie Washington

If you are short of cash until your next paycheck, the option of getting a short-term loan from a payday lender is available to most people. Of course, you should not borrow money without a good reason, but the following are three situations when a cash advance may make sense.

You will incur a late fee

If you have a rent payment or other type of financial obligation that may incur a late fee, the value of a payday loan is a straightforward calculation. You need only look at how much the short-term loan will cost you, and compare that to the fee you will be charged when you fail to meet your financial obligation. Payday lenders make it easy to make this comparison. Because these loans are paid back in a single, lump sum, you will know the exact amount you will need to pay, as well as the day it will be due. A single late fee may be more or less that the cost of a loan, but you In cases you may have more than one late fee to deal with, so you will need to total them first, then compare that to a short-term fee.

Your Credit is in Danger

Many financial obligations will not only cost you a late fee, but the late payment will be noted on your credit report. One example is a car loan payment. In this case, the late fee is only a part of your calculation to determine the value of a payday loan. You also need to think about the important of our credit rating.

You need the money for a special gift

Perhaps you have a son or daughter with a birthday in the next few days, and are short the money to buy them the gift you want to. Older children may understand getting a delayed birthday gift, but smaller children may not. Other examples include a graduation gift for a niece or nephew, Christmas or other holiday gifts. Granted, by getting a payday loan, the gift will cost you more because of the loan fee, but this may be worth it to you in order to avoid hurting the feelings of a loved one.

If you are short of cash before your next payday, the option of a quick short-term loan is something to consider. It may not be best for everybody, but there are several situations where it may make sense to you. The above three situations are three good examples of when a payday advance loan can help you. For more information, visit sites like http://www.paydayexpresscashadvance.com.