I was asked to write about good uses of a Payday Loan. I have posted before on this topic, but it's worth a refresher since so many people are short on cash nowadays.
Payday loans are tools that should be only used carefully and in certain circumstances. When possible, it's usually better to not get into a situation that requires payday loans to begin with. It's also a good idea to keep your credit history clean so that if you find yourself stuck in a jam you can explore less expensive ways of borrowing money.
However, if you are able to use a payday loan in the situation for which it was originally intended - paying it off within a two-week period, and not needing another one - then there are situations that come up unexpectedly for which the money could be used. Some examples include: last-minute car repair bill, an unexpected medical bill, avoiding a late fee on a credit card, needing to cover moving expenses such as first/last month rent in an apartment, or covering a temporary gap between income and spending (such as a contractor who may not have gotten paid on time by a client).
If you ever find yourself needing short-term cash, and do consider a payday loan, be sure to do your research. Figure out what the fees are, find out if your state has usury laws limiting those fees, and figure out how much you'll be paying if you don't manage to get the money within two weeks. And do your best to prevent needing short-term cash. Live within your means, and do all you can to give yourself a savings cushion for those unexpected expenses.
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