You've probably heard of payday loans, but don't really know why someone would choose that type of loan. This article is here to give you ideas of when they should be used:

- Auto repairs that can't wait till next payday

- Urgent medical expenses that need to be paid for up front before services are provided

- Prescriptions

- Payments to creditors that have little, or no, grace period and the regular payment might be late.

- When money is coming but urgent needs still need to be handled such as food and utility bills.

A person can also find themselves in a situation where it is not so urgent but it might make life a little more convenient. The following reasons are for those individuals that are going to borrow responsibly and find ways to make sure their loans are repaid.

It is not advisable to take payday fast cash loans for little things that can add up and cost you more money in the long run. And bigger ticket items typically need more traditional bank loans. Besides, most payday lenders have a low maximum amount you can borrow. Some are $500 and others are closer to $1500.

- Christmas money that can be paid back after work bonuses are given and overtime paid

- Bailing a friend or loved one out of trouble.

- Unexpected windows of opportunity that may otherwise pass a person by when their funds are low.

As mentioned earlier, the reasons listed above are not typically recommended. It is a fact that debt in our country is a serious problem. So be forewarned if you choose to take a payday loan for not-so-urgent situations.

What is involved with a payday loan?

- The process of finding a lender

- Discussing their rates and fees

- Proof of income

- Proof of bank account

- Post-dated check or post-dated pre-authorized draft of your account to repay the loan

- Your signature on the contract

Some things to consider when taking a payday quick cash loan:

- Are the interest rates and fees comparable other lenders in your area?

- What are the rollover, or extension, fees?

- What repayment options are available to you?

- What are all the non-payment, late payment penalties?

- What are the laws in your state regarding payday loans?

Be a smart consumer and find these things out. Communicate with your lender. This industry provides an resource for people who otherwise wouldn't be able to get cash as quickly through a bank, or who have bad credit and need cash quickly.