Before You Apply for Payday Loans, Read This

Payday loans targeted in media

Educate yourself on how to be careful with your money.

I have come across a lot of editorials and other opinionated texts about payday loans lately. Newspaper editorial boards and activist columnists are writing about how payday lenders are “predatory,” and they need to be regulated.

People are quick to call on the organizations to change their practices or even cease business all together. Legislators write payday loan reform bills in the name of “protecting the consumer.” As a consumer, I can say that I am pretty confident in my ability to protect myself. And I bet you are, too.

Tips for using payday loans wisely

So, I have decided to compile a list of tips for people who are considering getting payday loans. At the end of the day, it is the borrower’s responsibility to stick to their loan agreements and be responsible with how they use and pay back their payday loans.

If you’re thinking of getting payday loans, make sure you follow these rules:

1. Emergencies and opportunities

There are only three situations in which you should consider using payday loans: emergencies, when it will save you money or when it will make you money.

For instance, if you have a choice between getting a payday loan or having your heat shut off, that’s an acceptable time to use one. A case in which a payday loan might save you  money would be if you run the risk of getting hit with multiple overdraft charges or bounced check fees. If those fees will cost you more than the fee for a payday loan, the payday loan is obviously a better choice. ... click here to read the rest of the article titled "Before You Apply for Payday Loans, Read This"