How is a Payday Loan a Tool for Saving Money?

Every life has occasions when emergency expenses mess up a budget. It may not seem fair. It certainly isn’t convenient. But, as the bumper sticker says (this is paraphrasing for obvious reasons): stuff happens.

The emergency might require you to spend every last penny in your checking account, money you needed to pay regular bills. So you take care of one need, but then end up with another – or several. You might need $200 or $500 or $1000 to cover everything from the gas bill to the phone bill to the cable/broadband, cell phone, car insurance and perhaps a credit card bill. Then you do the math:

Bill                                           Penalty
Gas                                           $20
Phone                                       $26
Cable                                        $30   
Cell                                           $20
Car insurance                             $35
Credit card                                $50
Total penalties                        $181

Clearly, you need to find a safety net, something that can help you avoid these charges. Because in addition to the explicit, one-month fees you might get bad marks added to your credit score. Who wants that?

A cash advance loan – money borrowed on your next paycheck, also called a payday loan – might help solve the problem. These cash advances come with their own price tag, but depending on where you live and how much you earn, you should be able to get enough in cash to cover these bills but pay a lower price overall for the loan. The advantage is more than avoiding fees – it’s in helping improve rather than drop your credit rating.

Borrowing a cash advance despite poor credit

Millions of first-time borrowers question the feasibility of getting cash advance paycheck loans. If they already have poor credit, how would they qualify?

That’s understandable, given how credit card companies and other lenders likely have turned them down in the past. But payday loans are based on work, much more than credit history. The loans then are often available to borrowers who were turned down elsewhere.