Why people get payday loans?

 If their monthly budget can’t cover their monthly expenses. 

Family can have more demands than what they can afford, and then they start to get payday loans to cover their expenses. This is highly not recommended, as payday loans are specified for short term or urgent financial situations, and not for the ongoing daily life. Using payday loans for your daily life expenses will entre you in an endless cycle of debt.

 

In case your car breaks down and you need an urgent help to pay repair bill.

Car repairing is one of the most common situations where people can get payday loans to cover an unexpected cost. Keeping an eye on your car is essential to avoid the total breakdown of a car. In addition, car maintenance is an essential cost element in any house hold budget, so it`s much better to save cash from month to month to cover any unexpected damages in your car.

 

Medical emergency is a second big cause to get a payday loan.

Although medical emergency is a big cause why family can go for a payday loan, but it’s not really recommended if you don’t really know how you will be going to repay this loan on its due time. Asking for governmental help for your case must be done before you go for a payday loan.

 

An overdrawn checking account can lead you to get your 1st payday loan

This situation happens if you write checks with an amount bigger than what you really have in your banking account. Most banks have an overdraft limit of $200, so they can accept transactions till your account become over drafted by this amount. Then, banks will apply fees for the unsettled amount once as $35, and then daily as $5 till you pay the overdue balance in full.

 

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