You might hear a lot about what supposedly qualifies as predatory lending. Back in the 2000’s, adjustable rate home loan mortgages were blamed for the housing bubble popping. Today, predatory lending is the headline when lenders get into high-interest auto loans. There is also high-interest rate credit cards and, of course, payday loans. It makes no difference that the many of these companies are headed by masters in executive leadership graduates or if they were launched by people who had credit and financial issues in the past. If you take out any type of loan, mortgage, credit card, or mortgage and you can’t manage your finances, you will fall into debt, and payday loans are no different. Here’s how you should be using your payday loan.
Imminent and Emergency Expenses
Have you ever needed to pay an important bill then went to view your checking account balance and found that the money you had just a day before was nowhere in sight? You might have been a victim of identity theft or had your money seized to pay back child support, a judgment, or garnished due to owing the IRS. Landlords aren’t very forgiving when tenants are late paying the rent, and being more than two or three days late can lead to an eviction. In a situation such as this, a payday loan can literally be the best financial move you can make.
Car Repair and Financing Needs
Many people need vehicles so that they can go to work and collect dependable paychecks. Public transportation might be a good suggestion in some cases, but it isn’t always reliable or even available in all locations for that matter. If you have a car that requires a good amount of mechanical work so that you can maintain employment, payday loans are a good choice. Even those who might need to get vehicle financing can be stuck unless they have a down payment. If you are not having an easy time saving the money and you are looking at getting a car right away, applying for a payday loan may not be a bad idea either.
Living Expenses and Savings
Buying groceries can be difficult if your paycheck is only big enough to pay basic bills. Additionally, it can be depressing to look in your wallet and find that it seems to always be empty. A lot of executive leadership masters online students don’t have a lot of money leftover for savings or living expenses while they are still in school. Although a payday loan can be approved and dispersed in about 24 hours, they should not be utilized for non-emergency situations. There are food pantries that you can go to if you really need help affording food, and having extra money for savings is usually a matter of budgeting.
If you do apply for a payday loan, you can expect to pay a high-interest rate. You are going to end up paying a large amount of money for a loan that probably won’t amount to more than a few thousand dollars at best. If you make your payments late, your payday loan may also be quickly turned over for collections. With that said, if it is a better of homeless or getting your car repaired so that you don’t get fired, payday loans aren’t a bad deal at all.