Sometimes the very act of being under financial pressure can cause individuals to make bad decisions in an effort to resolve their problems. While a payday loan may seem like a good solution at the time, hindsight can often reveal the pitfall of such a drastic measure.
Payday Loans Can Spiral
When you take out a payday loan, you essentially write the lender a post-dated check until your next payday. Let’s say that you borrow $300 and are required to repay $345. If you are unable to repay the loan on the agreed date, the lender will roll it over until your next payday for another $45. This can turn into a very expensive spiral.
The key thing to remember is that everything hinges on your ability to pay off the loan on your next payday. What happens if you should suffer an illness and have to miss a few days of work? As far as the lender is concerned, that is your problem. The loan will spiral. It’s always a bad bet to back a loan with the majority of your next check. Too many things can happen in the interim that could force you to miss the payment.
A Better Alternative
A good online payday loan alternative is to choose a service like Maxlend to obtain the funds you need with an installment loan. An installment loan does not require you to repay the entire amount you borrowed with your next check. Payments are split over time to make repayment easier.
The process of obtaining an installment loan can be just as easy as it is with a payday loan. You also don’t need perfect or even good credit to obtain an installment loan. You could be approved for as much as $1,250 when you apply and be given several installments to repay.
The last thing you need is additional stress when you require financial help. Putting yourself under the burden of repaying a payday loan could make your situation worse. Every one encounters difficulties from time to time, and securing a loan is sometimes necessary. It is important, however, to choose a loan that doesn’t leave you worse off than you were before.
Before you jump at the offer of a payday loan, take some time to explore the alternatives. You’ll thank yourself later when your financial situation improves because you made the right decision.