Short term payday loans have been around for years. These virtually instant financial solutions have entered the households of many consumers over the years. If you are currently having financial difficulty, you may be wondering if you should venture into the realm of the quick cash advance. You can arrive at a sound decision by asking yourself several questions pertaining to your current financial situation. Neither lender nor friend can tell you if you are suitable for a payday loan. Only you know if you can handle this advance. The following three questions will help you decide.
What is my Disposable Income?
Before you take any loan product, you should calculate your disposable income. Disposable income is the money you have left over after you pay your household bills. To arrive at this figure, add all of your monthly sources of income and subtract the collective amount of your bills from that. Your monthly income may include child support and government benefits if they are reliable sources. Your bills should include every bill that you have to pay on a monthly basis. The amount that you have left after you perform this calculation is your disposable income. If it is equal or greater than the amount of the payday advance you desire, then you are in an excellent position to take one.
Is There any Other way to get the Cash?
Before taking short term payday loans, you should see if you could get the funds from another source. Perhaps family and friends can loan you the money. Maybe your employer offers cash advances. Additionally, you might be able to sell something from your home that you no longer use. Exhaust all possibilities before completing an application for a payday loan.
Can I Delay the Emergency?
Because of their high interest and short repayment terms, payday advances are best for emergencies. Before making an application, see if you can take care of your situation later when you have the money. For example, if you are considering taking a payday loan to purchase an electronic product that you do not necessarily need today, you should wait until you can save up the funds.
Short term payday loans are not poor products. In fact, they can be lifesavers for people in the right financial position. Just make sure that you can pay back the proceeds comfortably without putting undue stress on yourself.