Payday loans can either be a life-saver or an easy way of getting caught in a vicious cycle of borrowing money that you aren't able to pay back. The trick is to knowing how to get the best payday loans possible while using them for the right reasons.

It's a scene that plays out for many of us, we come up short before our next pay. Or a situation crops up such as an unexpected repair or medical emergency, or even a forgotten bill or obligation. Whatever the case, it is possible to remedy the problem by using payday loans as the solution. By remembering these simple rules you'll be able to make an informed choice the next time you're faced with a financial dilemma and contemplate the world of payday loans.

Rule # 1
Never use payday loans as a regular part of your budget planning If you're doing that, then you need to make adjustments somewhere and perhaps even do some prioritizing. If it means resorting to using payday loans in order to get the latest gadget or must-have gizmo, then you're simply living beyond your means and only going to dig yourself further into debt. Payday loans should be used in true emergencies, simply because the fees and interest rates are substantially higher than that of traditional loans issued by a bank, but considerably easier to get.

There are some cases when it's actually smarter to use payday loans. For example, let's say you've forgotten that your high-interest credit card is due a week before your next paycheck. By doing a little research and smart planning, you can find the loan with the lowest rates, most reasonable fees and then use that to pay the credit card company. This way you'll avoid the often exorbitant late fees and interest charges and keep your credit intact.

Rule # 2
Never borrow more than you can afford to pay back
Seems like a simple rule, but you'd be surprised at how easily it's broken. Payday loans are an easy way to perpetuate the cycle and stay in debt. Being completely certain you're only borrowing the minimum you need AND you'll be able to pay it back on payday AND still be able to meet your other obligations is the only way that payday loans will ever work to your advantage.

Rule # 3
Know what you're getting and who you're getting it from
Be positive you've read all the terms and conditions when obtaining payday loans. Be sure that you agree with the date you are to repay your loan and that you'll have the available funds to do so. Since most payday loans will debit the funds directly from your bank account, the last thing you want to do is have insufficient funds.

Now that you know what you're getting, make sure you know who you're getting it from. It should go without saying that one must always be careful with personal information. Names, bank account numbers and social security numbers are all it takes for thieves to wreak havoc on your life. Sensitive data should only be given to companies that you feel secure dealing with. If you have any trepidations or uneasy feelings for any reason about the company, then it's best to move on and find one you can be comfortable with. There are, of course, a large amount of reputable lending companies that offer payday loans who are professional and quite safe to do business with, just make sure the one you deal with meets your expectations.