Many people are easily enticed by the idea of same day loans. You fill out a simple application, and in a few hours you have a few hundred bucks magically deposited into your checking account! Sounds pretty awesome, right? That is until the day comes that you have to pay back this ridiculously expensive loan! Sure, they are a good way to get fast cash, but their ease makes them a dangerous venture. In this post I want to offer some tips for protecting yourself when using loans like these.
The most obvious thing that you can do is to not borrow a penny more than you need to cover your emergency expense. Borrowing too much means that you have extra money to spend on other stuff, which is helpful, but you’re going to be paying extremely high interest on that other stuff. That $5 pack of smokes will cost you $6 since you’re paying interest on the purchase.
Also, do everything you can to earn extra money while your loan is out. The day that you pay the loan back, half of your paycheck is going to be gone, so any extra cash you can come up with is going to be extremely helpful when paying bills. This is the only way to not feel any financial pressure on the day you pay the loan back.
Relying on same day loans is what puts people into enormous debt. If you end up broke after paying the loan back, do anything you can to make money, as long as it’s not another loan. As soon as you apply for another or apply for a loan extension, you are now in debt to the lender and are going to struggle to get out of it!
Same day loans are dangerous, but can be used in an intelligent way that prevents debt. Use the tips above to keep your head above water while getting the extra cash that you need.