Payday Loans: Wise Usage Tips Every Family Should Know

Unforeseen financial setbacks can happen in any household. An unexpected loss of income, medical emergency, and many other situations can develop without warning, leaving the family in a precarious financial situation. If the problem continues beyond a few days or weeks, emergency funds can quickly become depleted, and the household often begins to look for money from other sources, such as personal loans from friends and relatives or payday loans. 

Using payday loans wisely

Payday loans, when used wisely and repaid quickly, can be an important tool to help families get through periods of unexpected financial difficulty. But they must be used wisely, and borrowers must have a solid plan for repaying them on time to limit the fees and interest they will owe. 

Meeting the repayment schedule

While payday loans often provide the cash that families need for daily living expenses when normal income levels fall, or a costly emergency arises, families should never take them out without having a way to meet the repayment schedule. If normal income does not resume in time to pay off the payday loan, families should look for additional ways in which to earn the money they will need to repay the temporary payday loan. 

Some ways to do this include: 

  • taking on a temporary part-time job, such as delivering pizza in the evenings or mowing lawns on the weekend
  • selling or pawning unneeded household items or electronics
  • having a yard sale or selling excess clothing, books, and household items online
  • cashing in coins that have accumulated in the home and car

Doing whatever you can to meet the agreed-upon payments of the payday loan promptly will prevent additional fees from being added and help to limit the amount of interest you will pay over the length of the loan. 

Dealing with repayment issues

If, after taking out a payday loan, you find that your financial issues continue to worsen and that you are unable to meet the agreed-upon repayment terms, you will need to discuss your situation honestly with the payday lender.

Doing this, instead of avoiding their calls, will help you find other options, including extensions of the payment plan or changes in the terms of the original payday loan. Extended payment plans, if offered by your payday lender, can give you the additional time you need to repay the payday loan successfully.

Before taking out any payday loan, take time to ask questions and ensure that the proposed repayment terms will work for your family and financial situation. For more information, check out a website like