Individuals develop their good and bad habits at an early age. If you want to become a responsible person, you have to practice the right things now. Handling money is a very important task because if you make it a habit to spend more than what you actually earn, that is really bad and it can cause problems in the future. Opting for payday loans is not a very good option because this is considered one of the risky solutions available to over-spenders.
Payday loans can be a good solution for those who really need money because of an urgent situation. However, if you apply for payday loans without weighing the risks, you can be caught in some sort of debt trap that can only worsen your current situation.
There are certain disadvantages in applying for short-term loans. One very evident reason is the high cost. The annual interests can reach 400 to 800%. With this rate, it would be even much better to invest on high risk stocks because you can enjoy investment returns from 20 to 30%.
Because of bad financial planning, you will often resort to borrowing. At the start of the month, it is advisable that you set a realistic monthly budget so that you can already balance out your earnings and expenditures. Don’t make foolish purchases. Make sure that you keep a certain portion of your salary for savings so that when something comes up unexpectedly, you will have money to spend. There are counseling bureaus that can help you out in preparing monthly budgets.
Suppose you ended up borrowing money and now you have a creditor. Some individuals will tend to borrow again from someone else or probably apply for payday loans in order to pay the creditors. This is not good and it would be best to talk to your creditors and ask if they can wait until your next paycheck. You can save a lot on the interest if you follow this advice.
Urgent payments can be made through credit cards. The interest charges of credit cards are much lower than the payday loans. If you’re member of a credit union, you can borrow a loan because the interest there is also lower. If you have the guts to talk to your employer, then you can ask him to give you a cash advance especially in the case of a medical emergency. Your employer will surely understand the situation that you are in if you just talk to him in a nice way.
If you can’t fight the urge of borrowing, don’t go for payday loans yet. Ask your friends or relatives if they can lend you money and tell them that you’re going to pay them back in two weeks or even a month. This will only work if you don’t have any bad credit record or if you paid your previous debts to them.
There are also community social services that give urgent financial assistance to the needy. You can ask if you’re qualified to receive such assistance.
So there you have it; you just have to know your other options before you plunge into applying for a payday loan. Payday loans have an upside but the disadvantages are so obvious and as long as you can avoid it, try to do so. Just apply for it when you have exhausted all the other options.
Whether you are in need of cash because of a family emergency or that you need cash to pay for your bills that you forgot about, then you know that it can be quite frustrating if you realized that it’s still a couple of weeks more of work to salary day. Now, what if you need the cash right then and there? The answer to this is by taking out a loan.
What if you have bad credit?
You would think that lenders wouldn’t even think twice rejecting your application just because of your credit score. But, with payday loans, you can be sure that you will be able to get the money you need or get approved of the loan even if you have bad credit.
Basically, in this kind of loan, there is very little risk for the part of the lender. Even if you have bad credit, they are sure that you will pay them back on your next payday. The reason for this is that you will already give them post dated checks to repay your loan. Now, when the next payday arrives, the amount of the loan will be automatically deducted from your salary.
In most cases, lenders will not even check your credit score when they are approving you for the loan. Also, applying for this type of loan is very easy. You don’t even need to present documents that you normally need when applying for other types of loans, but all you need to do is fill out an application form for the loan and wait two to three days for the approval (sometimes even quicker).
They will deposit the funds from the loan into your bank account.
Qualifying for these loans is not that hard. You don’t even need to have a good credit score do to so. And, you don’t need a bunch of documents to present to the lender.
Whether you have a good credit or a bad credit rating, you can be sure that lenders will still be able to let you borrow the cash you need with payday loans.
Another great thing about payday loans is that it also offers flexible repayment plans. If you can’t repay the entire loan on your next payday, then you can still do so on the next one. This is how flexible payday loans are.
However, the only thing about payday loans is that because there is no collateral, the amount is often limited. The lender will try asking you how much money you earn on your salary. Then, they will base on this to determine how much money they will be able to lend you.
Having a bad credit score can be financially frustrating. Few lenders will even think of lending you money. You have to consider that by having a bad credit score, the lenders sees you as a great risk that will unlikely pay the loan in time. However, with payday loans in Texas, you can be sure that you will be able to get lenders to let you borrow some cash for them. The fact that they have security means that there is little risk involved in letting you borrow money.
So, the next time you are in financial need, you might want to consider getting this type of loan. With this loan, you will see that approval is easy even if you have bad credit, and repayment is also easy.