Personal loans can lead to trouble if you are not careful when you begin taking them out. Most lenders can charge up to 120% and even more in APR (Annual Percentage Rates). If you need a loan, there is nothing wrong with borrowing a little cash here and there, but if you need survival money, personal unsecured loans may not be the best answer for you.

Let's face it. We all need a helping hand sometimes and there is nothing wrong with asking for help when you need it. But when it comes to payday advances, big trouble lurks around every corner for those who are not careful. Fees are steep if you do not shop around and if you do not pay it all back right away. When you borrow $300, you could potentially pay back $330 or even more in fees to cover the advance.

If you borrowed every month for 4 months in a row, it would mean you would have to pay $120 extra in fees. That money could instead be saved to pay bills or to take care of other, more important household needs.

Some banks are now offering advance loans to people who have bad credit, making it easier that ever for people to get into trouble if they are not very careful. Most banks will allow you to take out an additional loan every month, yet you are expected to repay the amount you borrowed when your first deposit comes in, as well as the fees. It is easy to get in debt, so we recommend to you that if you intend to borrow money, be very sure that you only do so when it is an emergency, and that you pay back the loan as quickly as you can.

Instead of taking out additional cash advances every month, take the money that you would instead have used to cover the loan fees and put it away as savings. This will ensure that when the time comes that you need a little extra cash to get through, you have a little bit saved up. It may not be the answer to all of your problems, but it can at least soften the financial blow.

It also helps to cut back on nonessential expenses so that you can put more money towards savings. Have a yard sale and clear out all the items lying around your home that you do not use any longer. Payday loans are a useful tool when it comes to maintaining financial viability, but they come with risks of their own that cannot be ignored.