A recent survey on employed consumers was conducted to find out why they use payday installment loans. It was found that 75% of these people use payday installment loans to cover unexpected expenses or pay bills. The most popular reasons were to get a car fixed, pay for medical care, or to cover a monthly bill.
This only shows that when people are short on cash, a payday installment loan is a great way to save them money by avoiding bounced check fees and late payment fees. Here are some tips on how to best use payday installment loans in these situations:
· Using a payday installment loan to pay bills and avoid late fees
If you’re running a little behind on your bills, a payday installment loan can be a better option than paying late fees. Late fees on credit cards and other monthly bills can cost $30 or more. And if your utility or phone service is disconnected, there are more fees to pay to reconnect your service. A payday installment loan is a better option than paying the late fees for each of your bills.
· Using a payday installment loan to avoid bounced check fees and overdraft charges
Getting a payday installment loan is usually a better option than bouncing a check or using your bank’s overdraft protection service. Each time you bounce a check, both your bank and the merchant will charge a fee. The total cost is typically $40 to $70 for each bounced check. So if you bounce two or more checks, you can save lots of money by getting a payday installment loan.
· Using a payday installment loan for other urgent cash needs
Some things just can’t wait until your next payday. If you have an urgent need, you can use a payday installment loan for this purpose. For example, if your car breaks down and you can’t miss work then a quick loan might prevent lost income. Also, if you have an urgent medical need but are short of cash, a payday installment loan may be the right solution. Millions of people use payday installment loans to cover these expenses because they are fast and convenient.
What are the limits on using a payday installment loan?
Not in all situations make payday loans right for you. Before getting a loan, it is recommended that you look into all of your options.Here are some of these situations where you may want to think about it before taking out a loan:
· Paying for revolving credit (such as credit cards)
· Paying off other loans
· Shopping spree and irresponsible spending
· Long-term projects
Payday installment loans are good options for emergency and urgent cash needs only. These loans are timely solutions when handled properly and responsibly.