By now, everyone is surely aware of payday loans. Like all loans, they can provide useful money under the right circumstances. Of course, understanding those circumstances is a different matter altogether.

There are some factors and information you might wish to consider. Like any loan, payday loans are a financial obligation, so it is something you should not consider lightly, even over such a short term. That said, when you use them correctly, they can prove very useful and beneficial.


First and foremost, you should do some basic maths to work out whether or not a payday loan is useful. If you’re facing an expense or charge, for instance, are the costs for being this late worse than the repayments on the loan? If they cost more, the loan is arguably better. If they cost less, then they may outweigh the payday loan. This is assuming, however, that paying late is an option. When time is a factor, the payday loan may offer an additional benefit.


Likewise, you need to consider your ability to repay the loan. Payday loans are small amounts, designed to help cover costs until you next get paid. The interest continues to accrue on the owed amount if you don’t pay off on time, which can become very expensive. Before taking out any loan, you should understand whether or not this is acceptable and financially feasible. If you can’t afford a certain amount of money now, can you afford to cut it out of your income to repay the loan at the end of the month?

What Uses

With all this in mind, payday loans may sound easy, but they are for emergencies and other necessary uses only. Spending and using such loans freely is reckless financial behaviour, and can land you in debt in a manner similar to credit cards; all the little borrowing can add up, after all. As such, any loan needs to be careful considered against your already existing financial obligations.

Instead, keep payday loans as an option for unexpected, yet vital charges. This includes things like car repairs and household costs; expenses that can otherwise further damage your life, including threatening your financial income too.

If you need your car to work, then this makes it a bigger priority, for instance. Using a loan to cover this kind of short-term cost could make sense, providing you’ve taken careful planning and laid out a sensible repayment plan.

Joe Edward

Joe Edward