Online Payday Loans

Online Payday Loans – The Good, The Bad, and The Ugly

The current economy has eliminated the ease of credit access most of us became so familiar with during the boom years of the 90s and early 2000s, leading to a boom in the Cash Advance and Payday Loan industry. As the industry has exploded, so has the ease online presence of these companies, which typically offer a no credit check advance against your paycheck for amounts ranging from $100.00 to 1500.00.

While these short-term loans can be a life-saver when used properly, unfortunately, many people use them as a sort of credit card replacement, piling payday loan upon payday loan, and then using new loans to make the payments off of the old ones. This is a real trap, and ultimately, can make a bad financial situation that much worse.

Payday loans are not meant to be a long-term solution to short-term problems, let alone to financial problems that may be long-term themselves. Before even considering a payday loan to meet a short-term need or emergency, the applicant should determine whether or not the reason for which one is applying truly constitutes an emergency. Having some old friends show up and wanting to show them a night on the town is not an emergency; needing to pay the rent to avoid eviction is.

Additionally, before taking out an online payday loan, one should really sit down and go over one’s expenses and income, and eliminate all unnecessary expenditures from one’s budget. Plan your spending for the next 3 months, and then, stick to the plan. If you are tired of running out of money before the end of the month, you need to plan where the money goes before you spend it. Simply by taking an hour or two to draw up a basic budget and spending plan, you will, in the long run, save days, if not weeks of fretting and worrying over money.

The purpose of formulating a basic budget and spending plan is to eliminate the long-term spending habits that so often lead us into short-term financial emergencies. If after taking these prudent steps to resolve your long-term financial issues, you still find yourself with a short-term emergency, then you may prudently consider applying for an instant payday loan online. But don’t do so until you have budgeted, on paper, how you will be able to repay the loan plus the interest charge, and still meet your other obligations.

Payday loans, when used wisely, can serve a need for short-term cash flow emergencies that would otherwise go unmet. But they should not be used as a band-aid to cover over a long term problem. Get your financial house and spending habits in order first; only then should you consider taking out online payday loans.