It is no surprise that many payday loan providers have made it easy to get payday loans. With just a simple online application, you’ve secured a payday loan.
Even with the high-interest rate, more and more people keep taking out Payday loans daily to cover emergencies and other living expenses.
This might make you wonder why many people keep taking out payday loans, notwithstanding their risks to personal finance. Sometimes it ends with them seeking debt consolidation or Payday loan relief.
Follow this read to find out what’s in a Payday loan and why it is overrated.
Easy and Fast Approval With Bad Credit
Payday loans are easy and quick to access. When people are impatient with long processes, a Payday loan is a better option. You don’t need a good credit history to qualify or go through the rigorous processes of loan qualification to get a Payday loan. Provided you are employed or have a static source of income, you are qualified to get a Payday loan.
Instant Provision of Funds
People go for payday loans to cover unexpected expenses because it provides an instant fund for emergencies.
For instance, let’s say you need $300 for an unplanned situation and don’t have enough funds in your savings account. You don’t have to go for a personal loan that would take time; you simply go to a payday lender to get the cash.
You get the money on the spot and pay it back later. Call it a life-saver loan—fast and straightforward!
It is Flexible for Use
You can use the money for any expenses you wish to make. “Emergency” covers a wide range of costs. Hence there are no restrictions on the use of payday loans.
Short-Term Duration
Unlike other loans that can put you into debt for a very long time, payday loans are for two weeks to a month, which is for emergencies and simple expenses.
Can Be Renewed/Rolled Over
Payday loans can be renewed often if the borrower does not meet the payment deadline. This is so because a lot of borrowers are not able to repay the total amount. Instead of defaulting, they opt to roll over the loan or renew it by borrowing again. This gives the borrower more time to repay the loan.
However, borrowers can get stuck in the debt cycle and pay much more than the initial amount borrowed. When this happens, the best thing to do is apply for a Payday loan consolidation to get payday loan relief.
It is Unsecured
A payday loan does not require any form of security like; proof of collateral, co-signer, financial documents, etc. All you need is your proof of income or bank statement, and you’d get quick help with a Payday loan.
You can sign up for a direct debit from your bank account or a check on your next payday to pay off your debt.
As good as a Payday loan may look, it is essential that you know how to budget money wisely. This is so you don’t find yourself seeking help with payday loans and eventually opting for a Payday loan consolidation.
