Payday loans have become more popular during these strained economic times. Some companies have made it so easy to access these types of loans that you must be careful not to get in over your head. A payday loan isn't always the right solution to your money problems. As a consumer, you should take the time to consider all options and carefully determine whether you really should take out a cash advance.
Here are a couple good examples of when to use a payday loan:

You have an important bill that needs to be paid this week. If you have a bill that must be paid now and you know you will have the money to pay it with your next paycheck, then a payday loan can be a viable solution. Sometimes a bill simply must be paid to avoid circumstances like getting your electricity shut off. If you find yourself in a situation like that, obtaining a cash advance will allow you to solve the immediate problem.
You have an emergency car repair. If you've ever had your car breakdown you probably know just how stressful that situation can be. Many people rely heavily on their cars to accomplish day to day tasks such as getting back and forth to work. For some people, the inability to pay for a car repair might put their job or their family's well being in jeopardy. Obtaining a payday loan may be an ideal solution for this type of situation.


You should not use payday loan for these circumstances:

To go on vacation. Taking a vacation trip should be considered a luxury. If you have the means to take a trip during your vacation that's wonderful. However, since it is not an urgent or necessary situation, taking out a cash advance for this reason would be considered unwise.
To go to the casino. Everyone should take time out to have a good time and for some people that means heading to the casino. However, taking out a payday loan to have money to gamble would almost always be considered irresponsible and ill advised.
To buy a gift or splurge on an expensive product. At one time or another, most people have had the urge to buy something they just didn't have the money for at that moment. Whether it be a gift for someone else or something you suddenly can't live without, taking out a cash advance for a purchase of this kind is almost always irrational. Paying 15-30% on a purchase that you can pay 0% on in two weeks when you actually have the money in hand is just not smart.

Here are a few questions to ask yourself when deciding whether you should get a payday loan:

Is it truly an urgent or emergency situation?
Can I pay back the loan on my next pay date?
Can I budget for the loan balance so that repayment will not put me in worse financial shape?

A payday loan is not a cure all solution to your every financial situation. You are essentially borrowing money from your next paycheck so you should carefully think through the decision to obtain a cash advance before taking that step. If you foresee yourself needing another payday loan to pay off the current one, don't do it. However, if you could comfortably use money from your next paycheck for a situation that just cannot wait until then, then find a reliable payday loan company with low fees.