Countless unexpected expenditures crop up in everyday’s life that may be in the form of car maintenances, medical expenses, unpaid parking tickets or home repairs and the only solution to all such issue is often money. In ideal circumstances many of us would use credit as an option for such emergencies from our sufficient savings. However, in reality the picture is quite contrasting. Almost 60% of population has limited earnings and very less or no margin to save. Hence, many turn towards options to fulfill fast cash needs by relying on short termed loans. Recent news has been flashing payday loans online more than ever advocating about risks associated with the higher ARP. It is really worth analyzing the facts behind them.
Several households cannot avail credit cards due to a limited household income. When the emergency strikes, they feel trapped and there are no options. Luckily there are alternatives in the form of a few safe financial solutions and a few ones with a bit high interest. Today let’s check how to tackle a financial emergency considering a payday loan online when there are no savings or a credit available!
Why An Online Payday Loan?
As the name suggests, payday loans are short-termed fast cash loans that need to be repaid within the subsequent paycheck. Since they are short termed they are comparatively high interest loans as opposed to long period ones like personal loans.
Many financial help websites like AchieveFinance provide you with safe and secure payday loans online giving you quick access to the money needed. Learn more here: achievefinance.com/payday-loans-online.
Online payday loans’ approval response is pretty fast as lenders offering them can take an instant decision on completing the loan application. The online process is simple. When applying for payday loans, lenders require borrowers to provide the employment history, relevant personal details, and the banking information for the direct deposit of the funds. On the completion of the application form, the filled out information is securely transmitted to direct lenders for review and approval. In most cases a lender provides an approval response and borrowers can review and sign the loan contract if they are fine with it.
Sounds easy, but wait the fact that many are targeted by predatory lenders offering instant loans designed to deceive and ultimately leave borrowers worse off financially with dangerous debt traps. This is something that needs to be addressed.
So how do you handle such problems?
The financial help provider that you are going to choose matters as not all of them promote responsible borrowing to their customers. Remember that payday loans are meant to be a short-termed solution and should never be used as long-termed lending resource.
It’s recommended reconsidering the amount one wish to borrow depending on their next paycheck amount. Another aspect one should look out for when considering payday loans, is the Payday Loan rollover risk. It may appear as a “solution” at first hand, but the issue is that the solution can sometimes lead you to even more financial problems. Almost 20% of borrowers opt for the rollover, which in turn can increase the cost of the loan. Borrowers are expected to pay only the interest owed and extend the term of the loan for say another two weeks, at the cost of an additional interest and round of fees.
Also always ensure to only borrow what you can responsibly pay back on the loan maturity date. Alternately, there are other long termed loans available. All one needs to do is ask their lender if they provide other options like installment loans.
But if you are already trapped and struggling to escape payday lending, a few actions should begin to help improve your situation right away. One, speak to an accredited credit counselor to seek help in order to restructure your debt. Two, consider consolidating a payday loan debt with an alternate lower interest rate loan. Most important, don’t hesitate to ask as there are payday lenders who offer an extended payment plan without raising the interest. All you must do is ask for it!
Are there any ways to vet the safety of lenders?
Definitely there are ways to find how safe the lender is before borrowing any loan. Here are few tips:
- Read through fellow borrowers’ experience working with the website and the lenders.
- Look if the lenders are appropriately accredited.
- Meticulously read the complete loan agreement as well as the terms and conditions. If in doubt, ask questions too.
- Consider the APR and not just the interest rate of a loan, as it may help you understand any additional fees being charged and provide a better idea of the actual loan cost compared to other loans options.
- Find a loan that works best for you so it’s worth spending time to compare offers from multiple lenders and choose the best deal.
- Consider taking out a long-termed installment loan as the main advantage of an installment loan is that they are designed to be repaid in regularly scheduled payments over several months. Many installment loans also offer amortizing payment structures so that with every repayment, the initial amount of debt goes down.