Using a Payday Loan Responsibly - KnowHowTips.com

Worldwide, economies are recovering from economic recession. High unemployment, layoffs, and business closings have had short term and long term effects. An epidemic of financial turmoil has rolled across continents and into millions of lives on a scale never experienced before. Banks have not only folded, but have confiscated property, including homes, cars, and other assets for failure to pay. Here are some considerations about when and how to use payday loans to help bridge sudden financial emergencies.

911 Financial Crises

Payday loans may be exactly the antidote to unexpected emergencies. Medical emergencies may suddenly occur that require out-of-pocket or co-payments. For the uninsured, such loans may be the key to fast recovery so that work does not stop or delays are minimized.

Car emergencies are another reason to take out a payday loan. It?s not unusual for a car to unexpectedly require maintenance, repair or to experience malfunctions. Diagnostic work or towing is not cheap. Parking in the wrong zone, private lot or overstaying a meter can cause a car to be towed and impounded. In large cities, the car impoundment lot appears similar to one at the local car dealership, because of the sheer size and variety of cars. Typically, car drivers have a limited time period to pay fines when their car has been booted or towed. Every day the clock ticks and the fines grow. Not only can this snowball grow into hundreds of dollars, often money orders or cash is required to release a vehicle. If the car is not freed from impoundment, municipalities often put the car up for public auction. Not only can a person lose a needed work car for a short duration, but the potential exists to lose all money invested in the car.

Short term loans can arrest unexpected financial crises that snowball into bigger loses. While the world economy recovers, now is not the time for absences, being laid off, or considered a disposable liability rather than an asset. A short term loan can provide a safety net for job security in times of crises.

5 SMART Personal Finance Keys

In business, the key principle, ?SMART? refers to specific, measurable, attainable, reasonable and time sensitive. This principle can also be used for personal finance management. Before obtaining a loan, if possible, a person should revisit or obtain his or her credit score. This will establish a base line before further financing options are implemented.

• Specific: Determine specifically what the objectives are, the costs needed, whether the expense(s) can wait, and for how long.
• Measurable: Decide what expense(s) are needed now to meet objective(s). Establish exactly how fast and how much of the loan can be paid off and when. A spreadsheet is helpful. It can include dates of incoming funds, amount of incoming funds, short term loan amounts, and short term loan due date(s).
• Attainable: Decide if and from whom the loan is attainable, and whether the payback funds can be attained.
• Reasonable: Determine the short term loan amount and terms.
• Time sensitive: Decide whether the loan objective and payback timeline(s) are reasonable.

The doors to loans have narrowed among traditional financial institutions. Fortunately, short term loans (such as payday loans) have provided stop gaps to bridge financial hardships for those in need. Knowing when and how to use payday loans can be a lifestyle saver and a financial safety net.

Financial expert and writer Sharon Koontz is a blogger writing on behalf of nowaitloans.co.uk.?

Tags: business closings, car, car emergencies, clock ticks, economic recession, financial crises, financial emergencies, financial turmoil, Loan, medical emergencies, payday loans, public auction, short term loan, short term loans, unexpected emergencies, work, work car

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