Financial Health Guide to Grasping the Benefits of a Payday Advance
Lack of financial prowess and cash can become a mental health struggle. Get help. Read this financial health guide to grasping the benefits of a payday advance.
We need it to live but it causes us stress, anxiety, and even depression. Financial stress is common, with over 70% of adults reporting that they worry about money.
And sometimes, money needs become more critical. Illness, natural disasters, and death all sneak up on us at unexpected times. And more times than not, they bring extra bills along with them.
Fortunately, there are options when you need money in a pinch. Short-term financing options, like a payday advance, are a way to get you out of a temporary financial bind.
In this financial health guide, we’ll talk about the benefits of short-term financing when you’re out of options.
The Unhealthy Side of Finances
When you need money fast, it can seem like you’re getting crushed under a boulder of financial stress. This is often compounded by issues like bad credit and lack of assets.
Stress is one of the main factors in causing health issues like heart disease, stroke, and diabetes. If you’re stressing out about money, you’re not doing your body any favors.
Financial stress takes its toll on your mental health as well. You’re more likely to fall into a pattern of depressive behavior when you have money troubles. Depression leads to other mental health issues like eating disorders and addiction.
Sometimes just knowing that there are options helps you overcome the unhealthy nature of financial stress. That’s where short-term financing options like payday loans can help.
What is a Payday Advance?
A payday advance is one of several types of cash loans. Cash loans allow you to get cash fast by pledging future income. This saves you from having to pay penalties on late fees in a financial emergency.
To get a payday loan, you must supply some basic information to the lender. You ask for a specific dollar amount. These loans usually range from $300 to $1,000.
The lender asks you to show proof of income. You pay an upfront fee for the loan. Then you get to leave with the cash.
It’s important to read the fine print when you receive a cash loan. The loan has a term date, which is the date you must pay it back plus interest. If you don’t pay it back in time, there are late fees and extension fees.
There are lots of benefits to payday loans – here’s just a few.
Speed and Ease
Traditional loans require a ton of paperwork. That takes time and isn’t very convenient when you need money immediately. Payday loans have almost no paperwork.
You can apply for these loans online instead of going to a payday loan location. If you’re approved, the money is deposited into your bank account immediately. If you’re declined, you’ll know about it right away.
Which means you can pursue other means of finding money. This is important when you’re in a hurry. Because banks and credit cards might take days or weeks to approve or decline your request.
Also, payday loans give you cash. As opposed to credit cards which are only a means of getting credit. Some credit cards offer cash advance options, but these are sometimes more expensive than a payday loan.
No Collateral Necessary
Payday loans usually aren’t very big, which means you don’t have to provide collateral for the loan. Collateral is something of value like a car or a home. If you don’t have anything to offer, it’s okay with a payday loan.
The loan is secured by your future income. So you must give your lender a post-dated check or permission to debit your bank account on a certain date.
If you can’t meet the deadline, you talk to the lender about extending the loan. But you never risk losing your car or home.
Credit Isn’t a Factor
The “no credit check” aspect of payday loans is often the most appealing. If you have bad credit, falling on financial hard times is even worse. Because your options are limited.
But there also some things to consider first.
Beware of deceptive lending practices. When you search for a payday loan vendor, make sure it’s a reputable one. Google them to see if they have a good online presence.
Check reviews. And keep your eye open for anything that doesn’t feel right.
Fortunately, deceptive practices are followed more closely than ever with new financial regulations. So as long as you do your research and find the right lender, you’ll be okay.
Higher Interest Rates & Fees
Payday loans aren’t cheap. There’s often an upfront fee and a late fee if not paid off on time. And the interest rate might be much higher than a credit card.
Make sure you know what you’re getting into by reading the fine print. Know when your loan is due and how much interest you’ll pay at that time.
If you don’t plan ahead with this type of loan, you can fall into an unhealthy cycle. Extending the loan means you’ll pay more in fees and interest.
Peace of Mind: It’s Worth It
Financial hardship sneaks up on everyone from time to time. And the stress it creates is dangerous to your physical and mental health.
You can get a payday advance fast, with very little paperwork. And there is no credit check or collateral necessary.
Despite the drawbacks, the peace of mind it brings you is worth it in the long run. If you’re out of financial options, get the help you need no matter the cost.
Are you looking for some motivation to overcome your financial hardship? Check out our Quotes and Thoughts section for inspiring words of wisdom.