Many who are well acquainted with finance principles have noted the difference between good debt and bad debt. They have also given plenty of good advice on how to get out of debt. But, there’s another piece of the puzzle that is sometimes too easily overlooked – how to use debt to avoid a worse fate – and perhaps worse debt later on.

Here are 5 key situations where using debt in a smart way can be a better solution, all in all, than trying to “get by” without any financing:

1. Short-term Crisis

If you have a financial shortfall between paychecks or that will only last for a matter of weeks or months, using short-term loans, like those offered by BingoLoans for example, to avert what might otherwise be a long-term problem can be a wise move.

If, and only if, you have steady income and resources to repay the short-term payday or personal loan, making all payments on time to avoid any late fees, this kind of stopgap measure may be the way to get through an unexpected financial squeeze.

2. Lower APR Than Credit Cards

Many do not realize that many personal installment loans, which you can apply for online, have lower interest rates than many credit cards. It depends, of course, on your credit card and on your credit score and other factors that a lender would take into account in setting loan terms.

But the point is, credit cards are not always a better way to go than a short-term, quick cash loan. It pays to explore your options. Otherwise, you could be paying more interest over the long run than you really need to be.

3. You Have Bad Credit

If you really need cash fast but you can’t get a traditional bank loan due to damaged credit or lack of significant credit history, taking out a short-term loan and repaying it on time can actually help improve your credit score.

Most lenders of payday and personal loans online accept below-average credit. Some accept any credit score and no credit and don’t even bother to run a credit check on you. Why? Because they are basing lending decisions on the borrower’s ability to repay and not on past credit history.

4. Avoid Debt & Repossessions

Let’s say you are facing overdraft fees on your bank account, getting behind on your mortgage, losing your rent to own car and all the money you’ve paid into it thus far, late fees for late payments on various possessions, or repossession of needful items.

In some cases, taking out a very short-term loan will incur less interest and fees than doing nothing and letting accounts get overdrawn for lack of funds to pay bills or getting hit with various late fees. Do the math and figure out which route is best instead of just assuming a quick cash loan can’t help.

5. Don’t Go Without Necessities

If your house is badly in need of repair, or if your vehicle and only means of transportation is broken down, it can hurt more to just go without than to obtain the financing necessary to fix the problem.

You have to weigh the importance of what’s at stake. If you lack money for food for this week or month, you can’t just go without. Debt is not ideal, but if it gets you through a crisis, it can be worth it.

These are just five suggestions as to when short-term debt from a reputable lender may make more sense than is usually thought. Whether payday or personal loans are the right answer for you will depend on your exact situation and available resources.