Payday Loans Can Be A Help Or A Hindrance

Online, April 13, 2011 (Newswire.com) - Payday loan companies seem to be springing up on every street corner, and the airwaves are filled with commercials touting loans "in as fast as 30 minutes." You may find yourself thinking these loans are not such a bad idea.

Payday loans can be a good thing. Emergencies don't get their names by being expected - and emergencies don't happen every day. Your car breaks down, and it's your only source of transportation to and from your job. Or your child becomes seriously ill, and you know you must have at least the insurance copay in hand when you walk into the emergency room. Neither situation can be put off until the next day.

This is where payday loans can be useful. You know you'll be able to repay the loan when your next paycheck comes, so you go ahead, complete the paperwork, get your money and take care of business. When the loan comes due, you pay it and the fees and interest that come with it. And that's that.

But the danger is that it gets to be too easy - and the next time you have a need, it's the first place you turn. Instead, you have to remember why you had to take out this type of loan in the first place, and take steps to assure that such a situation will not arise again, so you avoid paying the interest and fees - and you avoid the stress this type of financial emergency can bring.

If you find yourself getting close to this type of need again, step back and try to find another way. If your car is on the verge of breaking down, do preventive maintenance that will keep it running until you can afford to have it fixed without having to borrow money from anywhere.

Fast loans are available, and they do have their place. A little caution and common sense will allow them to remain a source of help, rather than a source of stress.