Throughout your lifetime, it's inevitable that you will fall on a rough patch every once in a while. During these times when money is tight, payday loans can help you to buy essentials that you need when payday is too far away. However, many people make the mistake of using payday loans as normal sources of credit. Payday loans do not equal credit, and there are some items that you should not use your payday loan to fund:

Gambling

Gambling is notoriously dangerous; however, it's even more dangerous when you're gambling money that isn't exactly yours. Yes, you may win; however, more often than not the house will win and you'll be left in a black hole of debt that is difficult to climb out of.

With payday loans, the high interest added on to your loan means that you would have to win significantly more than normal in order to cover your debts. While these loans are manageable with a structured repayment plan, it would be much more difficult to clear your debt if you wasted the loan on gambling. Additionally, using your loan to gamble with would remove the ability to pay for essentials that the loan should be taken to cover.

 Paying Off Other Sources of Debt

While many people with a credit card use balance transfer in order to consolidate their debt, this isn't a good idea with payday loans. With credit cards, banks are able to offer specific accounts with low interest that can be used to pay off separate credit cards with higher interest. These cards typically come with six or twelve months interest-free payments, giving you a great opportunity to consolidate your debt and pay small monthly contributions towards clearing it.

With payday loans, however, taking continuous loans to pay off different lenders is a dangerous game to play. The high interest involved means that you can quickly become trapped in a vicious circle, whereby you take a new loan to pay a previous lender. By doing this, you will only ever be paying the interest on previous loans while making little-to-no headway on your actual debt.

Opening a Monthly Contract

Modern entertainment and communication providers who offer digital TV or mobile phone contracts often ask for an initial upfront "joining fee". This fee is typically one or two months' subscription and is used in order to connect you to your chosen subscription.

It can be tempting to use your payday loan as an upfront payment for these monthly packages, particularly when a new mobile phone or television is on offer. However, you have to remember that these contracts typically have a 12 or 18-month minimum term. Before taking out such a contract, it's important that you have your finances in good working order to avoid getting yourself into a spiral of bad debt.

Expensive Luxury Items

Everyone likes to have the latest designer clothes or accessories. With such an emphasis on consumer culture these days, it's no surprise that people feel the need to keep up with recent trends.

However, you should never consider taking out a payday loan purely to indulge in a luxury item. Although they may seem important to you, they aren't essentials and taking unnecessary loans to purchase them isn't a good idea.

While the above items form a list of things that you shouldn't use your payday loan to fund, there are a vast number of situations where a cash advance can really help. If you encounter an unexpected car problem, a home repair or are hit with a huge bill you didn't see coming, payday loans can help give you the breathing space you need to get your finances in order. The most important thing is that you use payday loans responsibly and ensure that you will have enough money to clear the balance by the agreed date. If you think a payday loan could help you get out of an unexpected financial crisis, contact a payday loan company like Payday Express.