Everyone knows that payday loans cost a lot of money. All too often, people find themselves in the vicious cycles of repeatedly borrowing and paying off high interest rates every pay day. It doesn’t take a genius to figure out that those kinds of habits can break our backs financially in a hurry.

But does that mean that there are never cases where a payday loan makes sense? If you have any other options, it does. But, for many with poor credit and no cash on hand, a payday loan just might be the only option they have in certain circumstances. Here are some examples of when a payday loan might make sense:

• Car repairs. If your ride breaks down, and you need to get to work, paying the high interest might be better than missing the work.

• Emergency travel. We’re not suggesting a trip to the casino is emergency travel, and taking a payday loan to fund a vacation is a patently bad idea, regardless of where you’re going or how badly you “need a break.” But some travel needs crop up without notice. If, for example, you need to attend a funeral or similar event, a payday loan might make sense for you.

• Doctor’s visit. There are times when the difference in cost between a trip to a doctor’s office or clinic and the cost of an emergency room visit may justify taking out a payday loan for those who don’t have insurance.

• Rent. Payday loans aren’t the best way to pay the rent, on a regular basis, but if an unusual circumstance is going to make you late with the rent, it might be an option you consider. The only time this makes sense, though, is if the late fees on the rent are going to be more than the interest on the loan would be.

No matter what your reasons for taking out a cash advance, make sure that you pay it off completely on pay day. If you are absolutely unable to do so, at the very least borrow less every time you re-loan. This will still leave you paying ungodly amounts of interest, but at least you won’t be caught in a completely endless loop.

Photo via Dr. Keats