August 13, 2019

Category: Debt Management

When You Should & Shouldn’t Take an Online Loan

 

Considering applying for an online loan?

When it comes to finances, the saying’s often true: when it rains, it pours. An online loan can help, but is it the right choice for your situation?

The last thing you want is to end up with a loan that puts you in more of a financial bind than the one you’re already in.

 

When You Should Apply for an Online Loan

Short-term online loans can be a helpful option for making large, one-time purchases, managing unexpected expenses, or getting caught up on bills.

Some instances where it makes sense to apply for an online payday loan:

 

Paying for Unexpected Expenses

This is probably the most common reason to take out an online loan. Unexpected expenses are usually, well, pretty unexpected. You may need a sum of money in a hurry to get back on your feet.

Some unexpected expenses might include:

  • Car accidents
  • Family emergencies
  • Household repairs
  • Vet bills
  • Moving
  • Dental emergencies
  • Vehicle repairs

 

Making One-Time Purchases

Buying new furniture or new A/C for your home can be effective uses of short-term loans. Just play it smart. If you’re taking out a large loan to put money down on a new car that may be out of your monthly price range, it may not be worth the risk.

 

Paying Bills Due Before Your Next Payday

An online payday loan could be a good option for paying bills that are due before you get paid again. We understand the need to make every dollar last between checks. Payday loans are designed to help you pay your immediate expenses. The full loan balance is due on your next payday.

 

When You Shouldn’t Apply for an Online Loan

Sometimes, a short-term loan isn’t the best option for your needs. While having extra cash could be helpful, you could be adding extra weight to your overall debt when you factor in interest and fees.

Some instances where it doesn’t make sense to apply for an online loan:

 

Paying Off Another Outstanding Loan

We don’t recommend using one to pay off another loan. Even if you pay off the loan principal, you may still have outstanding interest to repay. When added on top of the new loan’s fees, you could end up in deeper debt than when you started, with just as much trouble paying it all back.

 

Paying for “Nice to Have” Expenses

A beautiful designer handbag you’ve been eyeing for months. The latest version of your choice smartphone. A tricked-out enhancement to your car.

These are all large purchases that may be outside of your current financial needs and goals. We call them “nice to haves.” Remember that an online loan, like a credit card, isn’t free money. You could be paying off that designer bag for months, even after you’ve stopped obsessing over it. In these cases, we recommend saving up money to purchase instead.

Imagine how great you’ll feel when you buy a “nice to have” with money you’ve saved? You can even buy it in cash to feel like a true boss.

 

Is an ACE online loan a good choice for your needs? Learn more today.

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