Is going to lenders a smart decision?

A financial emergency may catch you unawares and frequently occurs just as you start thinking about putting away some savings. Getting laid off, facing unexpected medical expenses, or dealing with the consequences of a natural disaster is devastating and likely to knock you off balance for a painfully long time. What options do you have to rejuvenate your budget in dire straits?

The public opinion of payday loans is that they are abusive. While triple-digit rates of interest cause resentment the first time you see them, economists view this kind of credit as actually balancing and consumption-smoothing, meaning that a borrower gets themselves a piece of future prosperity to make it through the current ill-being. Good examples of beneficial credits would be student loans (where a learner buys a chance to graduate at the expense of a stable future salary) and business credits (which allow an entrepreneur to invest in long-lasting machinery and tools to increase their wealth and make up for the loan repayment).

This, of course, stands true only in the appropriate state of affairs and when loans are used moderately, being paid off on the dot. Letting the payment lapse commonly results in an increase of debt and eventually may lead to the situation in which a lender presses charges against you (this, however, is impossible in Louisiana, Colorado and New Hampshire).

Another exceptional thing about payday loans is that they are often the only form of credit available to certain strata of the population.

Considering a payday loan in Louisiana

Both regulations and practice of use tend to process payday loans and cash advances as the same financial product. The entire scheme peculiar for this type of funding differs depending on the state. A priceless piece of advice here is to clarify all the conditions before jumping at the opportunity to have money fast.

Establish how long the loan period is. For instance, in Louisiana, it takes from two weeks up to 30 days before your debt starts amassing (after defaulting on a loan, the debt rate goes up to 36% in the first 12 months).
Make sure you are happy with the maximum sum. Louisiana lenders are legally bonded to offer not more than $350.
Double-check if you will be able to handle the percentage. Remember that it should not exceed 16.75%.
Ask if you can extend your repayment. Louisiana’s state law permits you to repay with an installment payment plan.

Other ways of coping with the money problem

If you are not sure whether repaying a loan is up to your strength, you might try to seek after other types of assistance.

Even though no one likes troubling their friends and family with borrowings, do not outright discard this possibility as it may save you from falling deeper into the pit of financial hardships.
In case you have been downsized or fired, check if you can resort to unemployment benefits. The availability of health insurance on your former job will help you to get compensated for job-related injuries. In the event of more serious health issues, it is advisable that you ask for federal or state benefits, e.g. the Social Security Disability program or anything else available.
Try to recover financially as fast as possible. That means you should look for resources in your local community, joining qualification classes and workshops, working on your resume and interview skills. New job opportunities may turn up surprisingly fast with only a bit of professional help and networking.