Payday loans often get a bad rap, but when you're in an emergency situation, are they the bad guys to avoid or the superheroes who can save the day? To answer this question, one must first understand what a payday loan is and who might use one.

Who Uses Payday Loans?

Many families live paycheck to paycheck. They carefully manage their finances to ensure that they have enough money for rent, food, education, healthcare, and other expenses. However, when the unexpected occurs, such as a leaky roof, a vehicle malfunction, or an emergency medical procedure, their lives can be thrown into a tailspin. What they need is cash, and they need it fast. However, when their next paycheck isn't due to arrive for another week or two, who can they turn to in their hour of need? Sometimes, the only answer is a payday loan.

Getting Cash Fast

Payday loans are cash advances that are available to just about anyone who has a job and a checking account.  Borrowers usually receive a few hundred dollars, and there is a fee on top of that to borrow it. The application process is not long, and upon approval, customers receive cash that can be used for anything they need, including overdue bills and medical expenses. The average loan term for a payday loan is two weeks, which is perfect for the individual in need of quick cash before their next paycheck. 

The Bad Guys or Superheroes?

At first glance, payday loans seem to be a smart, effective solution for those in need of fast cash. 

• They are easier to obtain than bank loans
• You can find payday loan offices almost everywhere 
• There are no extensive application processes to go through

So what isn't to love? Opponents of payday loans argue that rates of 400% and up are absurd. It's true that crunching the numbers on these short-term loans reveals that they aren't viable long-term solutions. However, it's important to remember that a small fee for these easy to obtain loans is much better than the alternatives. You could lose your job because your car couldn't be repaired. You could be faced with thousands of dollars in damage because a leaky roof had to wait two more weeks until a paycheck could arrive.

The truth of the matter is that payday loans (available at facilities like 1st Choice Money Center) make a way out of no way for many consumers who could otherwise not obtain financing for the little bumps in life. As long as they are used wisely and paid back on time, payday loans can help individuals and families stay afloat in times of sudden economic distress.

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