It’s no secret that the economy is in trouble, and that it has been for a long time. While some people have turned to extreme measures– as seen in a rise in shoplifting and some have even begun selling body parts like blood plasma and hair, according to MSNBC– there are some more conventional ways that many people are making ends meet.

The World of Payday Loans

It’s not easy living paycheck to paycheck. Even if it’s possible to pay off the month’s bills there are still expenses like groceries and gas for the car. Plus, that doesn’t account for emergencies like needing car repairs or surprise medical expenses. When unforeseeable expenses like that come up, people can end up falling behind on bills. For most, taking out a loan can be difficult, especially when borrowers often have bad or little credit. When borrowers have trouble taking out loans

because of bad credit, they can join the 12 million other Americans who take out payday loans each year.

Payday loans are short term, relatively small sum loans that tend to be between $100-$1,000. They are called payday loans because they are typically due within two weeks of by the next payday. Payday loans are ideal for emergencies when unexpected expenses come up between paydays and a borrower doesn’t have the cash to pay for it. Borrowing from a payday loan lender is quick and convenient and only requires a small amount of paperwork. They can even be made online. When something bad happens, a payday loan can come to the rescue, though there are some things to keep in mind when taking out a loan.

How to Borrow Smart

Any adult, U.S. citizen who have a monthly income of at least $1,000 can apply for a payday loan. Not everyone is approved for a loan, though having bad credit doesn’t immediately disqualify someone. If given a loan, the borrower will usually get the funds transferred into their bank account within one business day. The loan then needs to be paid in full– the loan plus interest and any fees– by its due date, or the borrower can request an extension (not all lender will allow for extensions, or will only allow a limited number of them).

Whenever someone is taking out loans, they should be aware of warning signs that they are incurring too much debt. Some signs that their debt is become too much:

  • A significant percentage of their monthly income is going towards paying off debt (about 30% or more each month)
  • Credit card use gets out of control
  • They lose track of how much they owe
  • Creditors are constantly calling them
  • They have no money in savings in case of an emergency

Loans can be a helpful tool, and borrowers can certainly benefit from taking one out. If they can borrow safely and responsibly, there’s no reason not to turn to a payday loan lender in a time of need.