A Payday Loan?

Recently, I received a mailer offering me a short-term loan to cover emergencies. According to the lender, I was “Pre-approved” based on some criterion that they saw on my credit report which indicated to them that I was a good candidate for a loan.

It appears to me that as the government enacts legislations to monitor and govern these financial institutions, they are become more shrewd in their quest for unsuspecting indivituals who may be desperate, thus plunging them into more debt.

Therefore, before you consider applying for a payday loan, take a brief moment to consider your options. Ask yourself if it is really an emergency and if you can afford the loan at this time. Payday loans can be helpful for one-time emergency costs such as medical bills, but are not a good idea for funding unnecessary expenses.

So, if you have evaluated all of your options and decide that an emergency payday loan is right for you, be sure to understand all the costs and terms before you apply. Consider these two points:

• Shop around for a trusted payday lender that offers lower rates and fees.
• Borrow only as much as you know you can pay back with your next paycheck.

Now remember that when you get paid, your first priority should be to pay back the loan immediately. Learn more...