If you’ve ever had a serious financial emergency that you cannot pay for yourself, chances are that you may have considered taking out a payday loan online. The payday loan industry has been growing by leaps and bounds thanks to these uncertain economic times, and they can be a great idea for short-term emergency funds.

Some people may wonder why anybody would want to take out a cash advance if their finances are in poor shape. After all, most people who take out payday loans do so multiple times, a practice that can dig someone into a deep financial hole before too long. The simple answer to that question is that payday loans can work, provided that they are paid back quickly before another loan is needed. They are also the only options available to many middle-to-low income earners who are less likely to have assets that they can use as collateral for a more “legitimate” loan.

It is true that payday loans and cash advances can be very expensive, but most borrowers will be made aware of the costs on a company’s website or its literature. In other words, they know what they’re getting into. Payday loan companies make millions of dollars every year from costs that are passed to the consumer, but for many people having cash on hand is worth the cost of a payday loan. It’s certainly better than not being able to cover the costs that can arise from an emergency situation.

The advantage of a payday loan is that it can create an immediate sense of relief. Few things in this world are more stressful than financial difficulties, and any solution to money problems can be seen as a good thing, even if they’re temporary. This is why payday loans have become so popular in the last several years. Then again, they only really work as advertised when the borrower can pay them back quickly, otherwise the interest on the loans can add up and cost the borrower a lot of money in the long run.

That is the major disadvantage of relying on payday loans as a financial crutch. Borrowers start off by borrowing money that is needed immediately, but if they continue to have financial hardships they may not be able to pay off the loan in time. The six week loan turns into a six month loan, complete with higher fees and interest rates. For obvious reasons, this can be a serious problem for those who already have large debts that need to be paid back.

If you’re going to use a payday loan as a cure for your financial difficulties, make sure that it is a short-term loan that can be paid back quickly, preferably with your next paycheck. Payday loans can be more trouble than they’re worth for some people. For others, even a high interest cash advance can be a life saver. Keep in mind what you are getting into when you take out a payday loan, and make sure you can pay it off.