In a world where many of us have either lost work hours or have stopped working altogether, money can be a constant stressor. Stimulus checks only go so far and, for many, don’t go far enough to cover anything beyond basic living expenses. While they are often cautioned against as lenders are described as predatory, pay-day loans can actually be a lifeline.
Embarrassment and Mental Health
It can be incredibly embarrassing to ask friends and family for financial support. Most people would rather turn elsewhere than face asking their loved ones for a handout. This makes it an isolating experience as well. While Payday loans aren’t encouraged for regular use, they can help to bring some relief to families who need the support but struggle with feelings of guilt and shame. Numerous studies have shown that financial stress is cyclically linked to depression, anxiety, and substance abuse. While payday loans aren’t a realistic long-term option, they can be a part of your self-care in the short term.
For many parents, the holidays like Christmas and birthdays can be the most difficult time of the year. Most parents want to make their children’s dreams come true, but not all can afford to buy their kids the latest tech gadgets or the hottest new shoes, let alone a birthday cake. Payday loans can be a good option to allow parents some flexibility in their month to fit in these added expenses. Parents should be wary of the high interest rates that come with payday loans. For most payday loans full payment is expected on the next payday.
For those who do not have medical insurance, a short trip to the emergency room for even the most minor incident can leave them with bills that are not accounted for in their budget. While these bills can be the source of ongoing stress in the long term, most people will not hesitate to accept medical care for themselves, for family, even for their pets, when they find themselves in emergency situations. Payday loans can help to alleviate the immediate stress of money, leaving you to focus on what’s important. Beyond medical bills, payday loans can help to support loved ones when they take time away from work, covering common expenses such as food, gas, and parking, and to cover lawyers fees if wills and other legal documents need to be put in order.
Payday loans can also help in other emergent circumstances, like if you’ve had a flood in the home and need to repair. Or if you live in an area affected by wildfires and need to travel to a safe area. Feeling that your family is safe and secure is important, and payday loans can help to lighten your stress load.
For so many, the pandemic has taken a toll on savings accounts and income and left them struggling to make mortgage payments. If you’re a homeowner you’ll know that it’s a risk to miss a payment as the mortgage lender may begin to question whether you can afford the home. Homeowners are often permitted a grace period for the first failure to pay. You may incur late fees, and the lender can choose to report you to credit bureaus. Missing a second payment, means you’ve gone into default. The third missed payment means foreclosure is likely. However, you can make arrangements with your lender, which they tend to be more partial to. And, a payday loan can help you to make your payments without fear of flagging yourself.
While many of life’s ‘milestones’ involve taking on some debt - first car (that’s not a beater), university, first home, etc., most of us anticipate paying off this debt, not building on top of it. However, life can throw curveballs at us, leading to unexpected debt. If your partner falls ill and can no longer work, the bills can add up quickly. The death of a loved one can result in unexpected financial obligations, and time away from work. While debt carried by a loved one is not inherited by friends and family, it would become the responsibility of a cosigner. In these instances, Payday loans can help to mitigate the financial stress of taking on new debt, while also giving you time to plan and access resources such as debt consolidators.
Fast & Easy
Most of the time, the entire application process can be handled online and you will receive money in your account almost instantaneously- typically within one business day. And there is no shortage of private lenders available. However, you need to do your research to find a lender with a good reputation. You can do this by checking out review sites.
You should also remember that these are meant to be short-term solutions, not long-term ones. The information found at https://www.paydayme.com/ points out that it is much more expensive to use short-term as compared to other types of loans. This is because they were designed to be used in case of emergency and, as a result, interest rates can be much higher and there are often associated fees.
Can Help You Overcome Bad Credit
If you’re in a position in which you’re starting to get back on your feet, but a bad credit score is delaying your progress, payday loans can be helpful. By allowing you to make payments on time for a fixed period (usually six months) you can watch your credit raise. Be smart about how you manage this as payday loans often have much higher interest rates than other loans and you don’t want to end up with more debt because of it. Set up payments with your lenders that will minimize your interest rates, and take it slow and easy.
Credit Checks Not Required
Payday lenders do not require credit checks, and they have fewer requirements than other lenders. Most require your Social Security Number, home address, proof of stable income, checking account information, and, in some places, documents to verify your income. Having the freedom to get a loan without a high credit rating makes payday loans the optimal choice for emergencies.
There are many instances in which a payday loan, used wisely, can be helpful as a temporary, short-term form of relief. Financial stress is one of the most harmful to our mental health and can become a circular problem if not managed wisely. Seeking out reputable lenders will help you to be able to navigate this system wisely and safely, while you plan for a better financial future.
Posted 1 month ago by Allen Brown