The nation’s poor economy including the high unemployment rate, has more consumers than ever considering payday loans. The loans can be a way to bridge the gap and getting bills paid prior to the next payday.

However, you have to think about the fees, the high interest rates and the punitive late fees. That’s one reason why many state assemblies are proposing legislation that is designed to lower the fees and cap the interest rates payday loan firms charge their customers.

If you need to obtain a payday loan and want to use it responsibly and not spend an excessive amount in fees and penalties, follow these three steps:

• Emergency use- Only use payday loans for true emergencies. If your gas bill is already late or you need gas in your car and the next check isn’t for two weeks, a payday loan might be the right choice. Resist using payday loans for a two day vacation or one hour shopping spree. Only use payday loans for essential, emergency items and situations.

• Understand the charges- Always get the fees and interest rate up front and in writing. If you can’t get it in writing, go to someone else.  Avoid any surprises.

• On time payments- Make every deadline when it comes to paying back your loan. It’s a fast route to financial disaster if you don’t. Many payday lenders charge excessive penalties and late fees when payments are missed. You want to avoid falling into this situation

If you follow these three tips, you should be able to manage your payday loan.

Photo via @joefoodie