It’s already an accepted fact that everyone has been – at some point in their lives – been in a situation where there is a sudden need of cash to somehow cope with unexpected hospitalization and medical bills, a much needed car repair, and for several other reasons. However, one question that always struck the minds of many is whether considering a payday loan is a good ideal solution for such situations? Are these type of loans great options for emergencies? There will be some situations where the answers would be a big NO, and there will be some that would suggest a YES, but whatever the situation is, it is important to take several aspects into consideration to know if the getting one is the right answer.
Is it the only source of funds that are available as of the moment? This is one of the first questions that anyone should ask themselves. Sources may come in form of credit cards or banks, families or friends. However, if such options are in no way viable for the person in need – for whatever reasons it may be, then the option of getting a payday loan is going to be their only choice. But, before taking out one, they should try to see if they are qualified to get the funds using the other options first. Make it a last resort.
Secondly, always consider the fact that payday lenders are going to make you pay what you borrowed with their high interest rates which can easily double the amount of the loaned money specially if mishandled well. Is this something you can afford? If the intention of your loan is just to pay off another loan from another lender, then you’re basically just digging yourself a deeper hole, and will make it less likely for you to afford it. Always seek out for more options, especially if you know you can’t afford to get a payday loan, you may be surprised to see that there are still other options you can use and can afford easily. So before getting one, make sure you can afford to repay everything you borrowed plus its interest, and unless it something that’s affordable with your source of income, don’t get one.