Three Times When It Is Worth to Take a Payday Loan
The popularity of payday loans has highly skyrocketed over the last decade. Whenever one needs money but has no time for the process of getting the loan from other lenders, a payday loan becomes the easier way out. These short-term loans with high-interest rates are also the best solution to poor or no credit scores since the lenders do not need such information. Unfortunately, the high interest of payday loans makes them a somewhat risky idea for your finances as seen from some lawsuits that followed.
Additionally, it is possible to live in debt or end up bankrupt because of one payday loan. Nevertheless, there are some situations when payday loans become worth it. Here are some of these situations when it is worth applying for a payday loan.
You Expect Money in The Next Few Days
Payday loans are short-term loans that have a clearance deadline of about two weeks most times. More often than not, people who apply for payday loans expect to clear the loan on their payday. Unfortunately, clearing the loan with your salary means that you fall short of the money you need for other bills and may need to borrow again. However, if you expect money in addition to your salary, you can consider taking the loan. Nonetheless, ensure that the money you expect is enough to pay for the payday loan and its interest. Additionally, do not rely on money that you hope to get but instead be 100% assured that you will receive this money.
In The Event of Unexpected Emergencies
Sure, a responsible person is one who is always ready for emergencies. However, as prepared as you are, some unexpected emergencies exceed what you have. For instance, you may have a medical emergency, and you do not have medical insurance. In this case, even with the best credit score, you do not have time to apply for a bank loan since it takes several days before you can receive the amount. However, watch out for the issues that you call emergencies worth a payday loan.
You Need Only a Small Amount
The more the amount you borrow from a payday lender, the higher the interest. For this reason, borrowing a small amount of money from a payday lender may not make it hard for you to pay even with your salary. Additionally, in some situations, it is unnecessary to spend time in the long process of bank loan application to get a loan of about $10. In this case, you can consider getting a payday loan since it will most likely not strain you to clear the loan.
Payday loans can make or break you based on how well you handle them. This is why financial experts advise you to take payday loans only when it is indispensable. Additionally, do not make it a habit to get payday loans even in small amounts since they can eventually make you financially unhealthy.