Although not everyone has as much money as they might like, most people are able to live on their salaries each week from paycheck to paycheck. In some situations, however, extenuating circumstances mean that your salary is no longer enough. You might need car repairs, have an urgent bill that needs to be paid or even a medical emergency that requires immediate attention. If you need money in a hurry, then you might look at payday loans as a solution. Not every person is a candidate for a payday loan, so make sure these five characteristics apply to you before you seek out a payday loan yourself.

1. You Understand What a Payday Loan Is

Not everyone is truly aware of what a payday loan is. This kind of a loan is one with higher than average interest rates that is meant to be a short term solution for a lack of cash. It should be used for emergency situations rather then extra spending money. Most people will be accepted for these loans even if they have bad credit ratings.

2. You Are Aware Of the Costs and Fees Involved

Read throughout the contract of your payday loan very carefully before you decide to sign it. Payday loans often have interest rates, late fees, and even general costs of the loan. As long as you are aware of these costs and think you can handle them, then a payday loan might be a great choice for you.

3. You Know What the Interest Rate Is

If the contract isn't clear, make sure that you know the interest rate for your payday loan. Do the math to completely understand what you will pay for your loan. For example, if you take out a payday loan for $100 for a week and the interest rate is 25 percent per week, you may end up paying back $125.

4. You Meet the Loan Requirements

Most payday loans do not have strict requirements for lenders when it comes to monthly income or credit rating, but there are some stipulations you need to be aware of. In most states, borrowers need to be at least 18, have proof of their identification and a recent check or pay stub from their place of employment.

5. You Can Realistically Repay the Loan Within a Month

Never take out payday loans with the plan to extend the loans week after week. Ideally, you should only take out an amount that you can realistically repay when you receive your next paycheck. At most, it should take you a month to repay your loans.
Although not every is suited for payday loans, they can be very helpful in some situations. As long as you agree with each of the five statements above, a payday loan can be a great way to get out of a tight financial situation.
Monica Espinoza is a freelance blogger who writes about financial topics. Monica blogs for paydayloansuk.org.uk, an online payday lender that can help you secure the money you need today.