When you are jobless or stuck in a low-paying job, you have limited options. Amidst your struggles to make ends meet, payday loans are waiting for you. Over the past decade, their popularity has skyrocketed. But many people are wary of payday and installment loans due to the complaints they heard.
Do you want to apply for payday loans but still doubt it? In unexpected situations, payday loans can become your lifesaver. Despite their predatory appearance, they may not be as stressful as you think. These are why payday loans can be a wise choice for you.
From the name itself, payday loans are loans that must be paid on the next payday. Payday lenders offer loans based on the borrower’s financial capacity. The borrowers may avail varying amounts depending on their income and credit score. Payday loans indeed bear higher interest rates compared to traditional loans like banks. But, it enables borrowers to get instant cash, helping them during emergencies.
Why Payday Loans Are Useful
Amidst the skyrocketing popularity of payday loans, questions and criticisms remain. Even so, a lot of people still flock into the industry. These are the advantages of payday loans:
We opt to spend time with our loved ones during special occasions, such as birthdays, anniversaries, and holidays. We buy gifts or throw a surprise party to make these moments extra special. But sometimes, our finances limit our capacity to do so. In the end, we either promise a better celebration next time or find means to fuel our spending.
Also, note that you and your family may wish to travel, but you do not have enough resources. In most scenarios, you may turn to payday loans to get instant cash. So, if you borrow a few days before Christmas, you may opt to celebrate first before paying next year. But try not to spend like there’s no tomorrow so you will not run out of money and borrow again.
Applying for payday loans is an easy-peasy process. Borrowers may go to the nearest payday lenders in their area or apply online. You do not have to go through the hassle of a rigorous background check and submitting tons of requirements. You only have to fill out an application form and input personal and financial details. The release of approval is as swift as lightning.
Despite the easing of Canadian restrictions, its economy is still on its way to full recovery. Businesses have reopened, but the unemployment rate remains higher than the pre-pandemic level. That is why many Canadians are still stuck with joblessness or low-paying jobs. It remains hard for them to make ends meet, especially during emergencies. Also, the most recent inflation rate is 5.7 percent, the fastest pace since the 1990s. In turn, banks are starting to increase their interest rates so that borrowing will increase as well.
Payday loans are more appealing to low-income and jobless households due to their non-discriminatory nature. Banks may set income requirements, making it almost impossible for many people to borrow. Meanwhile, payday lenders only ask for your income to determine the amount you can borrow. So whether jobless or not, you will qualify for instant money.
After borrowing, you must pay it on the next payday. There are no installments or lengthy payment schedules to follow. The downside is that you may not have enough money in a short span, leading to higher interests and fees. But as long as you pay on time, you will not have any problem. Also, some lenders only impose 15 percent interest, compared to 17 percent, the average in Canada.
Payday loans are there to save your days when you need instant money. Your borrowings may depend on your needs and income level. But you must be sure to borrow from a regulated or listed payday lender to avoid any problems. Also, you must always check your budgeting and spending to determine how to enhance your finances.