She would not say you should take out a bad credit loan , which is often called a payday loan , in order to manage your finances. She would say “cut back, don’t buy, take a second job.” All well and good – but particularly if you are doing all of those things and you still get hit with an expense that wasn’t planned (medical, car repair, etc.), you need a stopgap method to keep paying your bills on time.
Paying bills on time is a Suze Ormon mantra. So she has to agree with us on this particular point.
The scenario where it makes sense to get a bad credit loan could be this:
1. Credit card payment is due on the 22nd of the month.
2. But you had an emergency medical cost on the 17th of the month – consuming the full $650 you planned to use to pay down your credit card (you might even have lower minimum payments due, say $400, but you were trying to be Ormon-worthy responsible by paying more than the minimum).
3. Your only other alternative is a loan shark, someone who would charge you 40% interest (and break your knuckles if you didn’t deliver).
4. So you get a bad credit loan ( online loans are recommended for their time efficiency and your ability to review terms from your computer, not standing in line at a payday loans store).
5. You pay your credit card bill on time – avoiding late fees, a potential interest rate hike and perhaps a negative mark on your credit card.
The fact is we adore Suze Ormon. She has helped millions of people. But so too do online loans. These so-called bad credit loans are for individuals who recognize the need to work away their debts – but occasionally run into circumstances that make paying bills on time more challenging than it should be. It’s a quick trick that can make a big long-term difference.