Let imagine for a moment that you are one of millions of Americans who are currently employed, yet feeling the strain of our current economic status.

Perhaps you work full time, and the wages aren’t bad, but as it stands currently you haven’t gotten far enough ahead to save up enough money to feel completely secure.  And even though you may be making good money, the utility bills, rent, food, car insurance, college bills and more seem to be just enough that you’re working just to keep your head above water.

Last month, you had over $2,000 in your savings, but an unexpected toothache sent you to the dentist, and then the orthodontist which wasn’t covered on your plan.  Cost to you, $1,000.

Earlier this month, your transmission suddenly went out on your gently used car.  Of course it’s not under warranty anymore, so there’s another $1,000 out of pocket!  But you had to get that car back on the road to get to work, not to mention pay for a few cabs in the meanwhile!

Now it’s nearing the end of the month but it’s still 5 days from payday, and now you’re looking at a cell phone bill, electric AND car insurance all due in right before your paycheck hits your bank account!!

This is where “responsible” decision making comes in, because you have several options.

- Pay your bills late, on your payday

But, you’ll be looking at 3 separate late fees, a possible “re-connect” fee on your cell phone plan, and what if you get in an accident while your car insurance has lapsed?  Doesn’t sound like a responsible decision to me!

- Overdraft your account to pay your bills

But, although you’re hoping to consolidate your “fees” to just that one overdraft, if you have been using that debit card elsewhere, chances are the bank will “arrange” the charges to reflect not only that overdraft, but several other charges which just “happen” to fall in such a pattern (not in the order they were charged of course!) that maximizes the potential for multiple overdraft fees.  Risky, but it could save you money OR cost a ton on overdrafts!

- A one-time payday advance loan

At least in this case, you’ll have ONE clearly defined charge, as long as you responsibly pay the loan back on time.  Sounds like, when used properly, a payday loan can be a very responsible decision to obtain finance, and avoid other more costly charges.

I think the key word here is responsibility.  If you take out a loan to help your finances, you need to stick to your plans and pay it back on time to avoid charges, just like your bills.