Payday loans are a great source of emergency income, but there are also ways to misuse and abuse them. Here are some times when you might be looking into a payday loan, and some advice on whether a payday loan should truly be your go-to:

You Have Small, Unexpected Bills

If an unexpected bill makes up a small portion of your income, say one-third or less, it's safe to take out a payday loan. You should be able to budget accordingly for the next month pay back the loan easily. Payday loans are designed to be a quick source of cash when you have an abnormal expense, and the lender will look at your income in order to determine the proper cap on a short-term loan.

You Want to Make a Special Purchase

Payday loans are seen more as an emergency loan source. If there is something that you want to purchase that won't go on your credit cards and doesn't fit within this month's budget, try to hold off the purchase to avoid further hot water. Using a payday loan as an extension of your credit is not a great option because of the higher interest rates on payday loans.

You Have Had an Emergency

A payday loan should be used in case of a short-term need. Perhaps you lost your job and you are scrambling to make a one-time payment of your rent. Or maybe you had a medical emergency that ate up your income for the month. In these short-term circumstances, it makes sense to take out a payday loan rather than get a lender involved. The lender will take much longer to bring the loan to fruition, and there will be a more comprehensive background check and application that's not necessary in the case of small loans.

You Can't Make Your Mortgage or Debt Payments

If you have a major financial responsibility, and you're struggling to make the payments on it, you're probably going to want to look at a more permanent solution to managing this debt. Unless you have encountered a one-time roadblock to paying your debt or mortgage, you could be putting your finances even more in jeopardy by looking for short-term payment solutions instead of stopping the problem at its source. It's worth consulting with a mortgage specialist or debt relief lawyers to work out a complete repayment plan or bankruptcy plan that will relieve you of unmanageable debt.

Contact a lawyer like Clinger Richard S for more information and assistance.