Moneytree, Check Into Cash, Cash Advance, even some furniture rental agencies are PayDay Loan Centers. We see them popping up everywhere and for a substantial reason, people actually use them - a lot. Nobody likes to pay 300 percent or more on a short-term loan, in fact, no one likes to borrow money from anyone in the first place, but let's face it there are times when the numbers simply do not crunch, our budgets are busted, or we simply have to face poor Peter after paying off Paul.
Here is my list of the one and only timesPayDay Loansare a good idea, along with some simple pointers to avoid the downside of utilizing them.
First, when you are moving. Most folks simply do not have the cash to pay for rental trucks, moving vans, apartment deposits, first and last, not to mention the household cleaning supplies and goods needed to make the transition from one residence to another. Considering that this is your new roof over your head, any expense - including luxurious interest rates - may be well worth it if and when the opportunity arises for you to improve your living situation.
Second, when you are going to a family reunion. The gang decides to all gather for a big family reunion and it is your last chance to see great grandma alive. You need a better camera, of course, and there is no flight to the tiny little town you grew up in, which means you will need a rental car when you get there.
Third, medical expenses. Whether it be the hospital, dentist or veterinarian, no one should have to forgo medical attention. What you gain in better health, will more than compensate you for the expensive loan. One exception being medications. Most doctors have freebies, if you ask. If you are poor, you should already be on some kind of emergency medication program. Most drug manufacturers offer free help, if you fill out the forms or go to their websites.
Fourth, funeral expenses or bereavement travel. Birth, weddings, funerals are once-in-a-lifetime events you do not want to miss. When someone you love dies, you simply have to be there and costs should not be standing in your way.
Fifth, car repair. Not the down payment, insurance, or car payment - you should have anticipated these expenses in your budget already. This last and final exception is when the car simply breaks down and you have to fix it to get to your job or school or doctor's office. Before taking out a PayDay loan you might want to see if your local car dealership offers its own credit card for service - many do. Even gasoline credit cards work for minor repairs at service stations that still do car maintenance. Hopefully, you have thought ahead to get Triple A or AARP motoring plan to help get the car towed, or the tire changed, but when the car simply is not safe to drive anymore due to power steering, an exhaust leak or body damage, it is time to get some kind of loan to quickly get the problem fixed.
Some tips regarding PayDay Loans. Go for as much as they will allow. Heck, you are going to pay through the nose anyway, you might as well enjoy it. If they offer some kind of discount or friend referral or other discount program for first time borrower, fill out the red tape and take advantage of it. Make sure the check is filled out correctly and plan on a date that will definitely work for you. If you know their date for payoff does not work for you, be honest, sometimes they can give an extension for a couple of days until you come in. Pay the loan off immediately as soon as you can. Early payoff sometimes results in less interest. Many people simply pay it off and take out another to get by for the next week. Some PayDay Loan offices refuse to allow this and for good reason, you will never get ahead. Do not use a new loan to pay off the old loan. Finally, do not use the funds for bank fees, credit card payments or other loans in general. The PayDay Loan is supposed to be your "port in a storm" - if you are always in the storm, you will never reach the port.
Want to avoid the temptation? Close your checking account. Open a savings and use Electronic Fund Transfer, Western Union, and or PayPal.
