Becoming A Responsible Homeowner

4 Situations Where Taking Out A Payday Loan Is A Good Choice

You might be hesitant to take out a payday loan due to certain stigmas that surround these loans, however, there are many different situations in which taking out a payday loan makes perfect sense. Payday loans can be a lifesaver, and they aren't any more risky than any other loans as long as you stay vigilant about re-paying the loan back on time. Here are a few situations where taking out a payday loan makes perfect sense. 

Your Utilities Are About to Be Cut Off

Many people don't realize that once your utilities are cut off, you can't just pay your bill and have them turned on again. Before your utilities are turned on again, you must not only re-pay the account in full, but also pay a bit extra to re-establish the utility. If both your water and electrical service is cut off, you will have to re-pay the overdue amount in full, plus you will face two extra charges for reinstatement. If you know you are going to be paid soon, taking out a payday loan to cover your utilities and prevent them from being shut off completely makes sense. 

Your Paycheck is Late 

Perhaps you work at a start-up that has a bit of difficulty getting you your paycheck on time, or maybe you have just started a new job and won't see your paycheck for upwards of three weeks, but you need cash now. In both these situations, taking out a payday loan makes sense. In this type of situation, taking out a payday loan would allow you to cover your expenses and have the cash that you need to live day-to-day until your paycheck finally gets to you. When it does arrive, you can pay back the payday loan immediately.

Remember, if you take out a loan in this situation ensure that the loan is for a smaller amount than your paycheck will be. That way you will be able to re-pay the loan, as well as have money leftover to cover your expenses, when your paycheck does finally arrive. 

You Have a Check That Might Bounce

Bounced checks can result in high fees, fines, as well as loss of reputation. If you have gotten yourself into a situation where you know that a check will bounce, it makes sense to take out a payday loan. Often times the cost of the payday loan, you will usually be charged a small finance charge that ranges from $10 to $30 per $100 when you take out the loan, is much smaller than what the bank would have charged you for a bounced check.

Also, if you bounce a check with certain services, they will refuse to take any further checks from you. Borrowing money from a pay day loan will allow you to avoid bank fees, as well as allow you to continue doing business with the store or company where the check would have otherwise bounced. 

You Owe State or Federal Fines

State or federal fines will start to add up and accrue more fines if they are not paid in a timely manner. If you can't pay a ticket or court costs, it makes sense to take out a payday loan. After the due date of the fine, you will be hit with more fines, and might even have a warrant issued for your arrest. In this case, it makes sense to take out a payday loan and cover your government fines in a timely manner so you don't end up in much bigger trouble down the road.

If you find yourself in any of this situations, try taking out a payday loan. Remember to keep the due date of the loan in mind so that you can be a responsible borrower and so you won't get more behind with your bills. Paydays loans can be of a great help, and take a huge burden off of your chest, as long as they are used responsibly. Learn more about the process by consulting companies like EZ Money.