Just when you thought everything is perfect, you have your money budgeted and you thought you just have saved a few penny for this month, and then suddenly one of your family members got sick, or your car needs repair. These things do happen; we are not fortune teller to know what would happen next. No matter how we budget our monthly income, sometimes, we want to buy something we want. Because we sometimes want to pamper ourselves and use a few pennies on our savings, this can make a huge difference when we then encounter an unexpected emergency need of cash.
When we say "emergency" that means the need of money is in the stage of extreme, or maybe you need it within the day. It is something that needs to be taken care of right here right now, or just within the day. The length of wait time given to people depends on how heavy the situation is. Some establishment gives you ample time to be able to get money or extends the repayment, but not everything or everyone does this.
In moment like this, our first move is to use our savings account, if not enough, we may want to ask for help from a family member or maybe just file a loan. When we say file a loan, we can go for a long term loan which is usually from a bank or a short term loans like payday loans. Here are things I have in mind, whenever I think I'm in need of extra cash; these are the things I consider:
The interest rate
The amount of time I have left
The amount of money I will be able to borrow / if it will be enough
How much effort I have exerted to have it
And the effect it will do in the future
Interest rate- this is the amount of money, one company can get from me because of the favor of borrowing money I need.
Time I have left-If the need of money is "today", that means I have to have that money "today". This would narrow down my search of possible lender. Not all lending company provides the money you need in a short period of time. If you lend from a family member, it would depend on the availability of their money. If you choose to borrow from a bank, you will have to fulfill their requirements then wait for a few days or maybe weeks. If you choose a payday loan, as long as you have sent their requirements, you can get the money with 24 hours.
The amount of money I can borrow- Even if the loan has low interest rate or maybe short wait time, if it can't cover the amount you need, then that means you will have to look for additional loan or maybe look for a different lending company.
How much effort you gave- Sometimes, when we are too stressed because of the problem we have, we are also looking for a stress free way of getting a loan, or maybe just less. We do consider the wait time, the interest and the amount, but sometimes, we just love the thought of something comforting us in times like this.
The effect- Filling for a loan can sometimes do good or maybe bad effect on you. I really consider this because this is something that could affect you next budget. This means instead of resolving it, it would prolong your problem/ fix the problem you have today and mess up your next and the next pay check. If you borrow money for emergency purposes, make sure that you only borrow the only amount you need or amount that you know you can pay. It is fun consuming the money and then after a while it could hurt your next pay check. This means you will have to file for another loan to cover the first loan, and it would go on and on until you find yourself in a deep debt. It's like buying a dozen of bread and then realizes the next day that you only need one. Sometimes, when we have a lot of money in hand, we tend to consume more than we are supposed to, more than we need. This is the reason why it is advisable to borrow just the amount you really need.
Payday loan is designed for unexpected cash crunch, if you don't know where to get help or you just simply need the money ASAP, this is exactly what payday loan is for.