Four Times Payday Loans May Be a Good Idea

Finance & Money Articles

If you are living paycheck to paycheck, you are not alone: approximately 40% of American households report this condition. These households include a wide range of socioeconomic classes; twenty-four percent of those who report being in this situation indicated that they made between $100,000 and $150,000. Living paycheck to paycheck means that if you incur an unexpected expense, you often do not have the financial means to meet it. When you find yourself in this position, you may want to turn to a payday loan to get you over the hump. Here are some times when that may be a great idea:

1. When You Are Facing Higher Fees

Bouncing a check can be expensive. The national average for a returned check not only includes an average nonsufficient check fee of approximately $33.00, but other fees as well. You will usually owe the business where you have written the check an additional fee, and you may also owe a late fee. With a payday loan, you will also pay fees, but these fees may be much less than the total fees that you will incur if you bounce a check or submit a late payment. 

2. When You Are Unable to Get to Work 

If you are living paycheck to paycheck, you definitely cannot afford to miss a check. Unfortunately, unexpected vehicle expenses can make that a reality. Most mechanics are usually not willing or able to work with you and wait for you to get paid. Your mechanic will probably expect to be paid when you pick up your vehicle. Using a payday loan to ensure that you are able to get to work may be a good use of these funds. 

3. When You Are Waiting on Your Income Tax Refund

There are certain times of the year that you may receive additional income, like your income tax refunds. While saving these funds will help you create a cushion that may keep you from living paycheck to paycheck, that is not always a reality.

If you need these funds sooner than you are anticipating them arriving, consider taking out a payday loan instead of paying the tax preparer for a rapid refund of your money. Depending on the interest rate of your payday loan, this may be a less expensive option.

4. When You Are Getting Ready to Be in the Dark

No one wants to be without power, but if you do not pay your power bill, the utility company will cut you off. If you are unable to find charitable options to assist you with paying your bill, you may want to consider taking out a payday loan.

The fees charged by a payday lender can be much cheaper than trying to reestablish service once you have been disconnected for nonpayment. If you are disconnected, not only will you usually have to pay the utility company the entire amount you owe them in order to reinstate service, but you may also have to come up with an additional deposit. Although deposit amounts vary from company to company, you may be facing up to two times your average bill.

For example, you may end up having to pay up to four months of utility service in order to get your lights turned back on, including the past due month, the current month, and a deposit equal to two months of service. 

This payment would be in addition to any late fees that may also be included. While some companies will allow you to pay your initial deposit over your first few months of service, if you are disconnected due to nonpayment, the entire deposit is normally due prior to them reinstating your service.

Contact a service like Payday Express to get started with the loan process. In order to minimize the fees charged on this type of loan, be prepared to pay it off in full at the end of the term.


10 May 2016

Budgeting For Real Life

As I see it, one problem with most budgeting programs is that they don't account for the "real life" factor. Anyone can tell you not to spend anything and to save everything, but when it comes to feeding your kids or dealing with a medical emergency, most budgets get thrown out the window. I realized that this was a problem, so I decided to start focusing on budgeting for real life. I decided to forget everything that I knew about budgeting and started working with a clean slate. This blog is all about budgeting for real life and knowing how to spend your money the smart way.