Essay On Payday Loans

If you had a financial emergency come up that you don’t have the cash to deal with, one way to pay for it is by getting a payday loan. However, before you sign on the dotted line for a payday loan, make sure you know what you are getting into.

Payday Loans Are Not For Everyday Expenses

The first thing you need to keep in mind is that payday loans should not be used for everyday expenses. You shouldn’t use a payday loan to get that pair of shoes that you will not have the money to buy for another pay period or two.

Payday loans should be used be used to pay off emergency expenses that cannot be delayed, not for everyday purchases for things you don’t need. For example, if your power is going to be turned off if you don’t pay your bill on time, a payday loan can be a great solution. Or if a part on your car is broke and it is your only means of transportation, that is what a payday loan is made for. …show more content…
Be sure to find out what the interest payment will be for your payday loan and make sure that the interest rate is put in writing on your payday loan contract.

Next, make sure that you can actually afford to pay back both your payday loan and the interest with your next paycheck. For example, if your next paycheck will be $800, you probably shouldn’t take out a payday loan for $800, because the interest will exceed what you bring home. The cost of your loan plus the interest needs to not exceed your paycheck.

Payday Loans Will Eat Up Your Next Paycheck

Finally, make sure that you are going to be able to make it till your next paycheck if you take out a payday loan. For example, if you take out a loan today and your next paycheck is in two weeks, make sure that you will have enough money left over from your paycheck after paying off your loan to make it till your next paycheck in two more