Have you ever found yourself in a financial pinch where you need money right away to settle a debt or deal with an emergency? It happens more often to more people than you might think, and your situation would by no means be described as unique. But faced with the challenge, what can be done?
Many people solve this cashflow problem by taking out a payday loan. Here are some reasons that you should do the same:
Quick and convenient
Payday loans can be a good way of borrowing money and the quickest way to immediately lay your hands on funds. Now that payday loans are available online, it is even more convenient. You do not need to leave home to secure a loan, which is a priority for many people affected by coronavirus stay-at-home orders. It also suits others working day shifts who cannot get away from work to visit a brick-and-mortar payday lender to secure a loan.
Online applications are easy to complete, and some supporting documentation is required. Utilise a site’s online calculator to enter the amount you want to borrow and how many instalments you would prefer to pay. You will get a quick answer on how much instalments will cost to ensure that the repayment suits your budget.
While most people assume that a payday loan is only for a few weeks, some options allow clients to pay a loan off over a longer period. Each lender has different alternatives to offer its clients. Multiple instalment loans tend to be considered when you borrow over a set amount determined by the lender.
Feedback is usually provided within a short space of time to let you know if your application is successful, and the money could be in your bank account within a matter of hours. This is far quicker compared with how long it takes to access funds from a bank loan.
To secure a loan, you need to prove your identity, income, and access to a valid UK bank account. Providing evidence of your identity is necessary for lenders to prevent fraudulent lending and ensure that you are of legal age to enter a loan contract.
You will have to prove your income from work, pension, or benefit payments, as a payday loan is granted using your income as security. You need a bank account so that the lender can deposit the money into it.
Beware of lenders who offer you cash, as this could indicate that they are not running a legitimate operation. Steer away from lenders who exhibit suspicious behaviour as they might be loan sharks operating illegally.
A payday loan is ideal if you have a less than ideal credit score. You will be hard-pressed to secure conventional financing from a bank if you have a history of not paying debts. Payday lenders tend to be less strict about credit check results. They are entitled to check your credit history before offering a loan, although this is more likely if you borrow a larger sum.
Unfortunately, your past financial decisions can come back to haunt you, especially when you have not repaid your debts. These include loans, credit cards, and other accounts. Once you do not pay, the balance rolls over, and interest is added. This causes the outstanding amount to spiral, making it impossible to repay.
When facing challenges paying off debt, consult a financial expert who can advise you the best way forward. See your creditors and tell them about your difficulties. They might offer you more time to repay your debt. You could also consider consolidating your debt with one loan and keeping up to date with payments.
Rehabilitating a poor credit score takes time and patience, things you might not have in abundance during a financial emergency. Fortunately, a payday loan is still within your reach and could help you get the cash needed to solve your problem.
Getting into debt that will last for even a few years can be burdensome. A payday loan is over and done within a short time, and you are free to take another one should another financial challenge arise. In the interim, you will not be saddled with debt repayments, and you can start saving towards an emergency fund.
Living as debt-free as possible is the best way to manage your finances, according to experts. While adults are likely to go into debt at some stage, whether to buy a house or car or finance another large purchase, they should exercise caution.
Going into debt without understanding or considering its ramifications is what gets many people into trouble. They get caught in a debt cycle that leaves them borrowing more funds to repay existing debt. This cycle is hard to break, and you might need to seek advice and support if it happens to you.