Are you using payday loans correctly?

Are you using payday loans correctly?

When an emergency comes up, payday loans are quick and easy loans that can cover you fast. They don’t require a credit check or collateral and in many cases, they will deposit money into your account within 24 hours.

What’s the drawback? You have to be comfortable giving them direct access to your account and forfeiting a huge chunk of your paycheck on pay day. For that reason, you should be aware whether you’re using it for a good reason or not.

First, ask yourself how often you’re taking them out and for what reason. Since they should only be used for emergencies, you shouldn’t be taking them out very often.  You should not take out a payday loan more than twice per year. If you’re using it more often than that then you’re probably taking out too many.  

Many people start using it as an extension of their paycheck or to cover a payment that their pay check missed. That’s incorrect usage. Payday loans are not designed to live on. They are for emergencies.

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