Emergency Cash: Using Payday Loans to Cover High Medical Expenses

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Payday loans are often looked at as last-resort options for borrowing money, but used responsibly they can be hugely useful financial resources - especially when you need money for emergency medical expenses!

Firstly, check that you will be able to pay back the money. Draw up a list of your incomings and outgoings, and budget your money carefully. After this, you need to have enough money left to pay off the loan in full - if you'll need longer, or need to make repayments in smaller amounts, then a payday loan is not right for this occasion! Typically, you'll need to settle the bill the next month - it's often possible to defer repayment, but payment of the interest is necessary, and you'll pay much more for the money.

Next, work out how much it will cost you to borrow the amount you need. Compare different payday loan companies, and look for any discount vouchers or deals which could save you money. Once you've found the cheapest option, look at how much you've borrowed and how much you'll pay back. Is there a way to minimize the interest that you pay? One drawback of payday loans is the heavy interest, so make sure you've accounted for this because there isn't an alternative. Wage advances or a cash advance from Payday One, or a similar company, can cost less and still meet requirements.

Once you've decided that you can afford a payday loan, it's time to make sure you don't incur accidental charges. Find out the day that the money is due to be paid back - its often wise to set this as a few days after your actual payday to allow for any problems if possible - and set reminders to pay back on this day or before. Record the ways you can pay the money back somewhere safe - if you pay online, email yourself the link, or write down the account details and any appropriate reference numbers. In case of emergencies, note down the repayment line for the company, so you can pay over the phone if necessary.

Finally, make sure you only borrow the amount you need. It can be tempting to borrow slightly more for frivolous spends, but this can be a dangerous path - it's much better to use other, more conventional credit lines for this kind of spend, rather than high-interest loans with short deadlines.

In case you need to use a payday loan again, look for any discount schemes - some companies offer 'points' for loans which allow you to gain different membership levels, with higher levels getting more benefits and lower interest rates. Payday loans shouldn't become a major financial tool, but when necessary and used correctly, they can help you pay expenses and cover emergencies relatively stress-free.