What is a Payday Loan?
Let’s start with the basics, what exactly is a Payday Loan? Payday loans in most cases are mostly needed in unforeseen situations: Unpaid speeding ticket, outrageous doctor bill or the inability to keep up with your mortgage on an off month. None the less Payday Loans has made it easy for people short of cash to be able to make it financially until their next paycheck. Payday loans are often very easy to get and sometimes involve no credit check at all, but the high APR means that they can be very risky for the borrower. Unlike traditional personal loans they are arranged over days rather than years, so can be used as a stop gap until your funds arrive.
What should you consider when taking out a Payday Loan?
As easy as it is to be approved for a payday loan, there are some variables to consider. The biggest one is to take in account that these are SHORT-TERM loans and shouldn’t be relied on weekly as a source of income. Many borrowers quickly find themselves underwater when they start relying on these loans to pay off normal, week-to-week expenses. Another thing to consider is the registration of the lender. Always be sure to verify with the state department for the safety and quality of your funds and agreement. Lastly and most importantly, have you exhausted all options before taking out a Payday Loan? There are increasingly more options for small, emergency loans: credit unions, emergency loan funds, credit cards or small personal bank loans. It’s best to explore these options before taking out a payday loan.
What risks can come with taking out a Payday Loan?
Just like anything else in life there are pros and cons, other than the pro of having extra cash until payday the cons are something that are just as important. When you don’t have a financial cushion in place and you need quick cash, a payday advance might seem like a good solution. But using a payday loan to get out of debt could be a costly mistake. Did you know that the average payday loan is extended eight times? By the time the loan is actually paid off, the loan fee ends up being significantly more than the original loan amount. When considering taking out a payday loan always be sure to note the APR as well as if your financial situation is stable enough to pay back what you borrowed. The payday loan debt trap can have a ripple effect. When people face costly payday loans, they might not be able to meet their other obligations, like basic living expenses or medical bills.
What do I do if I can’t pay back my payday loans?
Contact Solid Ground Financial, of course! Our Payday Loan Relief plan allows you to Consolidate Your Payday Loan Debt, credit cards, department store cards, personal loans, and medical bills! You can gain control of your finances without the stress of harassing calls from creditors or lenders. Regardless of your financial status, you deserve getting your interest rates lowered or even eliminated. With friendly professionals waiting to assist you in every financial way possible, Solid Ground is here to help!
