When Not to Use Payday Cash Loans

Tip 1. Know when payday cash loans are helpful.

Payday cash loans provide an important alternative for people in a variety of financial circumstances. They are most helpful when used occasionally to meet critical, unavoidable expenses. Some of these include:

• Avoiding eviction or foreclosure
• Keeping or getting a car on the road
• Maintaining utility service
• Emergency medical needs
• Avoiding bounced checks and associated fees
• Preventing a lapse in your car insurance
• Plumbing or other household maintenance emergencies

Tip 2. When a payday cash loan can hurt you.

• Cash loans should not take the place of responsible money management. It is important to make, and regularly revise, your household budget. Include all income and expenses. Look for places where you can cut back on expenses. Use this money to pay down debt and/or create a rainy day account.

• If you make a budget and still aren’t sure where your money is going, consider keeping a spending diary or allowing yourself only budgeted cash each week while foregoing use of your ATM/debit card.

• Do not use a payday cash loan for unnecessary or frivolous expenses. Sure you work hard and you deserve a new outfit or a night out, but protect your financial security by choosing to wait a week or two; or inviting good friends over for potluck and laughter instead.