In times of intense financial instability, such as the one that followed in the wake of the 2020 pandemic, sometimes you just need to borrow from yourself. You can dip into your savings and reallocate your budget as best you can, but when the tokens are down and your bank account is on the verge of draining, you may need to resort to something more drastic.
This is not necessarily the result of poor planning on your part: after all, we live in a world that always adapts to post-pandemic circumstances, and even the best planners can be struck out of the blue by a crisis. sudden expense that wipes out their savings.
You’ve got money on your next paycheck in two weeks, but now is the time. You can either make drastic sacrifices, like choosing to take home less food or leave medical issues untreated, or apply for a payday loan. Payday loans are risky, high APR short-term loans that are typically paid within two weeks of the date of issue. They are certainly not suitable for everyone, as the penalties for deferring their payment can be severe, but for people living paycheck to paycheck with lower than average credit scores, the payday loans offer quick fixes to complex solutions.
Here’s everything you need to know before you put that pen to paper, and how to find the loan that will best suit your needs.
A brief summary: payday loans and how they work
Payday loans are most often based on a borrower’s check that the lender holds as collateral, which is usually the amount borrowed plus any fees the lender bears. The amount that borrowers can borrow varies from state to state, but generally ranges from $ 100 to $ 1,000. If borrowers can, at the end of the loan period, they can either pay off their debt in a lump sum in cash, let the lender cash their collateral check at the bank, or defer their payment.
Deferring the payment might seem reasonable, especially if you’re a little short on being able to repay the lender on the due date. But beware: if done too often, it can be a very bad idea that traps you in a never-ending cycle of paying off your debtors. That is, unless you get really good at budgeting for a projected end date.
Anyone Can Get a Payday Loan
So many people choose to take out payday loans because they require virtually no effort to achieve it, and they are much easier to obtain than other types of less risky loans for people with bad credit history. All you need to apply for and get a payday loan is an open, non-overdrawn bank account, proof of your identity, and a reliable source of income. The process is ridiculously easy, as lenders don’t check your credit history or interview you to make sure you are able to repay them. When you take out a payday loan, you take responsibility for paying it off at some point – when and how much you have to pay.
The important thing for you is that you need the money now. And with so many lenders, it can be difficult to sift through them all and find the best deal for yourself. Fortunately, others have researched and compiled comprehensive lists of best payday loan companies over there right now. If payday loans seem like the answer to your problems and you are confident that you can pay off yours as soon as possible, then feel free to check out these lists and get the boost you need today.
Assess the risks before taking the plunge
One final qualifier, just because it bears repeating: the ease of payday loans makes them a viable option for people who need quick cash. But when considering pulling one off, you need to make sure that you have a potential end date for yourself and that you have the money to make sure you can meet that date. Payday loans can be a godsend; just use them wisely and you will find that you can stay on a solid financial footing while still getting the economic boost you need.