10 Reasons You Need to Get an Emergency Payday Loan

Make the most out of your funding with tips about the top reasons people take out short-term credit.

Here's why people take out emergency payday loans.

No matter to what part of the Internet you turn, there's some article or blog post telling you that taking out payday loans is bad. But is taking out a payday loan always something to be avoided? This article will tell you when it may be a good idea to take out this kind of cash assistance.

Request a Loan Today*
By clicking 'Get Started', I consent and agree to the E-Consent, Privacy Policy, Terms & Conditions, Responsible Lending & Marketing, and Legal Disclaimers.
*By filling out the form above, you will be routed to OpenCashAdvance.com’s loan request form.

Travel

You might get a call out of the blue that tells you that a beloved relative is gravely ill. However, the relative lives on the other side of the country. You're in credit card debt, so using credit cards isn't an option. In this case, taking out an emergency payday loan might make sense.

Wedding

Remember the days when your parents paid for your wedding? These days, you're considered lucky if your parents will write a check for you and your fiance to get married. Payday loans under these circumstances might act as a good idea.

Debt Consolidation

Are you under a mountain of debt? When you find yourself in this situation, it may seem as you will never get out of it. Many people undergo something called debt consolidation, which rolls all of your debt into one payment. Taking out a payday loan to get out of debt is a choice made by many consumers.

Car Repair

If you've ever had car trouble, then you know how expensive repairs can get if you don't nip things in the bud really quick. Not everyone has hundreds of dollars lying around, so a payday loan to take care of your car in the event of an accident can be a necessity.

Business Startup

You don't have to start a business to know how expensive it would be to sell a product or service out there in the marketplace. A lot of costs become associated with this endeavor, so it's no wonder that many business owners decide to take out emergency payday loans to cover their expenses.

Credit Card Transfer

You might have a lot of credit cards, some with higher APRs than others. Someone might tell you about the credit card transfer process. Thinking it's a good idea, you decide to do it. However, there are fees associated with this process. In this case, use a payday loan to pay down the fees and even a big chunk of your balance.

Home Improvement

No one needs to tell a homeowner about all the costs associated with owning a home. What someone may need to tell someone who owns a home is where they can get money to make home repairs. The good news is that cash-strapped homeowners might be able to borrow payday loans to fix issues with their home.

Medical Expenses

According to numerous studies, the number one thing that has gotten most Americans into debt is medical expenses. When you get a medical issue that isn't covered by your insurance, it can become a scary prospect. For this reason, many people in this situation use a payday loan or two to cover hospital costs and living expenses.

Funeral Costs

Losing someone you love is a horrible experience for all involved. Things become even more terrible when you realize that you can't pay for the funeral expenses. If you find yourself in this conundrum, consider taking out a payday loan to allow the deceased to rest in peace.

Rent

No one wants to get caught short when the rent is due. Getting the money needed to pay another month's rent becomes that much more important. While you could pick up extra shifts to pay for the shortfall, taking out a payday loan acts is a much easier solution to the problem.

What Exactly Are Payday Loans?

Payday loans act as temporary financial arrangements that help you out in the event of an unexpected circumstance. People take out payday loans so that they have cash even after they pay for their expenditure.

The problem that many financial experts have with payday loans is the amount of interest that this type of assistance can accrue. One person could pay 400 percent on a $100 loan that lasted two weeks. These rates can trap people in a cycle of debt out of which they can not extricate themselves.

How to Protect Yourself Against Predatory Lenders

Figure out why you need to take out the payday loan. Then try to figure out whether taking out a loan that has high interest will be in your best interests. Only take out a payday loan if you're trying to pay for one unexpected expense. If you're trying to pay your bills or cover regular living expenses, you can quickly get into trouble due to the interest.

The next thing you will need to do is figure out is if you can repay the interest. The rates of interest on payday loans vary wildly between US states. You could pay 250 percent interest in one state and pay 400 percent on the same loan in a bordering US state. Before you take the money from the loan, read the fine print and calculate the total cost of repayment.

The third thing you need to remember is that you should never use multiple payday lenders at the same time. Doing this could be financially ruinous. It's actually wrong to have more than one advance on one single paycheck. It could leave you in debt as the amount that you owe could exceed the amount on your paycheck.

Payday loans can act as a great way to pay for an unexpected expense or emergency. However, it is your responsibility to know all about how payday loans work. It is your duty to use these types of loans responsibly. You will need to pay attention to all of the terms on the loan contract. Doing this will allow you to figure out whether you can repay the contract on its terms. When you take out a payday loan without paying attention to the repayment terms, then you will risk getting stuck in an interminable cycle of debt.