When Not To Use A Payday Loan

Money from a payday loan

If you need money in a hurry and have bad credit, a payday loan can solve a lot of problems.  They are easy to get even if your credit is bad and they can get you money fast. With an online loan in Texas, you can get the money as soon as the next business day. That is fast.

Having said all of that, there are occasions where you would not want to use a payday loan. If used properly they are great but never use them to finance the following things.


Want to take a big trip but short on money? A quick loan might be a temptation but it would come at a huge financial cost. A vacation is something that can be done without or simply downsized to fit your budget. With interest rates approaching 500 percent or even higher, a payday loan is a serious matter. In addition, because these are very short loans, they are not well suited to finance something like a vacation.

Instead of taking out that expensive loan, just do not go on that trip. That or downsize it to something in state and more reasonable. You live in Texas and there is a lot of stuff to do locally. Take a cheap camping trip near San Marcos or hit the gulf coast.

There is a lot of stuff that you can do for just a few hundred dollars locally, so skip the loan and do something cheap.

Luxury Expenses

While we are at it, let’s talk about other luxury expenses. In general, if you can do without it, you do not need a payday loan.

If you need to pay the rent, that is one thing, if you want to go to a concert, that is another thing. It simply is not worth the risk of the high fees and the short loan term.

It is not uncommon for people to use high interest loans for the wrong reason. Don’t be that person. Be responsible and have a better financial picture.

Bills With Low Late Fees

Before taking out an expensive loan, you need to compare the loan fees to the potential late fees that you would face if you did not have the money.

It would not, for example, make sense to pay $60 in loan fees if the late charge is only $29.

Take all of the costs associated with not having the money and add them up. Then compare it to the total loan cost. Go with the option that costs you the least unless you are facing something like eviction or power disconnection.


Looking to get a little extra money because you have a sure fired way to double or even triple it? Think a payday loan is an easy way to get the money for this investment?

Don’t do it, these things never pan out. You will lose the money and then have to pay back an expensive high dollar loan in less than two weeks. You would be setting yourself up for disaster.

To Loan A Friend Money

Never ever take out a loan for a friend. If someone asks you, you should be offended. A real friend would never ask you to do something like that.

What happens if they are unable to pay you back. You would be the one with the overdrawn bank account and the one facing huge late fees and collections.

No, let your friend take care of their own matters. If they themselves can not get approved for a payday loan, something is wrong. Payday loan lenders are some of the most lenient on the planet so when they turn you down, you have some money problems.

Paying Off Another Payday Loan

If you find that you can not pay off a payday loan, using one to pay off another is a horrible idea. All that you would be doing is delaying the inevitable financial collapse and costing yourself more money. You would be adding more debt to yourself which will make your eventual recovery all the harder.

Instead of using one loan to pay another, contact your current lender. Ask them to work with you on a payment plan. Most smart lenders would rather take something rather than nothing and as a good practice, they should be willing to work with you.

In Conclusion

Although a payday loan is a great tool for those without access to other credit, it is also a dangerous one. Use is cautiously and as little as possible to avoid financial problems. And always remember, just because you get approved for a payday loan does not mean you can afford it.

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