Payday loans are small, short-term cash loans that consumers can borrow in emergencies or when they need some extra cash to pay the bills on time. An increasing number of Singaporean borrow payday loans throughout the year to help with everything from car repairs to medical bills to monthly expenses when money's tight. How do you know a payday loan is right for you? There are several things to consider before borrowing a cash loan.

What do you need the money for? First, consider why you're borrowing cash. Is it to pay for an expense that can be put off until later? A broken dishwasher or washing machine can be a frustrating inconvenience, for example, but they're not emergencies that need to be taken care of immediately. You can wash dishes by hand and take clothes to the laundromat or a neighbor's house until you have enough cash saved to fix the appliance. Medical and dental issues on the other hand, are emergencies you should address as soon as possible. Car repairs are another example, if you rely on your car for transportation and can't carpool or take the bus or train to work instead. Consider what kind of expense you're borrowing cash for: Is it a true emergency, or something that can wait while you save money from a few paychecks?

How much cash do you need? Payday lenders usually offer only up to $1500 cash loans. Many offer loans less than that, mandated by state law. The amount of cash you can borrow is usually determined by your monthly income: If you make $1,000 a month, you can borrow up to $1,000 or less. If you make $500 in a month, your cash advance limit would be $500 or less. If you need to borrow bigger cash amounts for longer amounts of time, try visiting your bank for a personal loan or using a credit card instead. Even if your credit isn't the greatest, you may still qualify for a bank loan due to some banks lowering their credit requirements.

What can you afford? Instant payday loans come with a price, and can cost up to $20 per $100 on average. Can you afford your payday loan with fees and interest? If not, consider a less expensive option.

Low interest payday loans may be controversial, but they sometimes have their place when used responsibly. Car repairs, dental work, and medical treatment can all be more affordable with help from a payday loan or cash advance. But these high interest, short term loans are not your only option.

Some banks and credit unions offer small personal loans for emergencies with 15% of the loan deposited into a mandatory savings account. When you pay off the loan, you then have access to the start of an emergency savings fund that can help you better prepare for the future.

Always do what makes sense for your finances and borrow responsibly.