Do Payday Loans Make Sense? 3 Reasons Why They Do

Do Payday Loans Make Sense? 3 Reasons Why They Do

Even though most borrowers tend to be skeptical about payday loans, there are actually certain scenarios whereby these fast loans make a lot of sense. You won’t believe it, but short term loans are actually less costly compared to other alternatives.

payday
photo source: www.dailyfinanceoptions.com

Let me walk you through 3 circumstances when payday loans can be of assistance, and why it might be a better option for you.

 

It Costs Less Than A Bounced Check

Yep, that’s completely true. When people find themselves in a financial crunch, they tend to write checks despite knowing very well that their accounts don’t have enough money.

Now, since many financial institutions usually raise overdraft fees, you can avoid the incurred fees if you opt with a payday loan. This is because the overdraft fees can shoot up very quick, especially if you’ve written multiple checks. Well, does that make sense?

Payday Loans Cost Cheaper Than Penalties And Fines

If you are being late paying a ticket, or you are required to pay off court costs, and you probably don’t have the funds, it’s better to borrow from a payday loan agency than to fail paying for the fines altogether. The fines are problematic in the long run.

payday loans
photo source: paydayloanscheapest.com

Short term loans also come in handy if you’d like to retain your driver’s license. You get to avoid further additional fines. Even better yet, if you know that you’ll be needing a short term loan on a frequent basis, then some of the companies can offer you the money at a lower interest rate, especially if you have better pay-back history. This let’s you save money avoid the penalties and fines.

It Is Cheaper Than Losing A Utility Service

Are you late paying your utility bills? Well, the fines can be much higher than a payday loan. Therefore, to avoid such extra expenses, you’ll need a payday loan to help you sort out the bill. This is a viable solution.

Nevertheless, this shouldn’t be very frequent. It might be costlier. If you are struggling to pay your utility bills, then it would be a great idea to try payday loans.

Final Thoughts

Let me be honest and say this; yes, it is true that short term loans might be costly, but should you incur extra charges through fines and penalties simply because you wouldn’t like to try it. Well, short-term loans are cheaper than certain alternatives.

Advisably, it is important that you check the terms and conditions carefully before choosing a payday loan. Look at the fine/penalty charges that will incur if you are late paying for that utility bill, and compare this with your payday loan interest rates.

Short term loans can make your life much easier. And that’s for sure.

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Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk