You can pay your regular expenses with a payday loan, as 70% of borrowers regularly do. However, payday loans should not be viewed as a useful tool, but an emergency one that is used when you don’t have any option.
Should I Get A Loan To Pay My Rent?
No. You should only turn to payday loans if you absolutely need them, which is usually when you can’t foresee a cost. With rent, you can anticipate bills, and plan ahead to ensure you can meet them. You should only take out a payday loan to pay your bills if you have no other option. Otherwise, payday loans should be used for emergency bills such as medical or dental ones.
How Much Money Can I Get With A Payday Loan?
How much you will be able to receive depends upon where you live and your personal circumstances. If you live in a state which limits how much borrowers can obtain, like California does at $300, you will be tied to a maximum of your state’s limit.
Other than where you live, how much you can receive will depend upon your financial history and your income. Many lenders will be willing to offer you a loan even if you have a weak credit history or low to low income.
The average loan is $375.
Can I Pay My Bills With A Payday Loan?
In theory, yes, you can use a payday loan to pay your bills, but you should carefully consider whether it’s sensible first. The most important consideration is whether you will be able to pay it back. While 70% of borrowers use payday loans to pay their regular bills, 86% of borrowers struggle to pay their loans back.
If you’re really desperate, you’re safe in the knowledge that your payday loan could be in your account just one hour after approval!
How Much Should I Apply For?
You should only apply for how much you need. Let’s say you require an extra $400 to cover this month’s rent, then you should only apply for $400 and no more.
The reason for this is that payday loans are notoriously expensive with 396% average APR across the United States. That means that the cost of borrowing is high, and for every dollar you borrow for a 12 month term, you would need to pay $3.96 to borrow it. That’s in addition to paying the dollar back itself. You shouldn’t spend any more than you need by borrowing any more than you need to.
Are Payday Loans a Good Option for Long-Term Financial Needs?
No, payday loans are not suitable for long-term financial needs. They are designed to be short-term solutions to address immediate cash flow issues. Payday loans typically come with high interest rates and fees, making them an expensive form of borrowing over an extended period. If you have long-term financial needs, it’s advisable to explore alternative options, such as personal loans with lower interest rates and more manageable repayment terms.