How a payday cash advance loan can help with financial emergencies
It sure would be nice if we all had the financial resources to write a check for something, no matter what situation arises. Unfortunately, that is not the reality for most of us. In fact, recent studies show that the vast majority of people don’t have the financial resources to handle a large unexpected expense, in terms of a savings account or a savings fund that we can easily access if we need it.
Many people have a 401k or something where they could borrow the money for an unexpected financial emergency, but accessing the money that way has many downsides. First of all, you must have the discipline to pay it back, and once you have spent it on whatever emergency has arisen, you will be back in exactly the same situation as before, wondering where you can find the money to pay it back. your loan from your 401k account. In addition, there is a substantial tax penalty for early withdrawal of funds from that account. Lastly, it can take literally weeks from the time you apply for that money to the time you receive it, which doesn’t go well with something that is truly an “emergency.”
If used wisely, a payday cash advance loan can solve this problem for you. If you have a regular job and a steady income, the chances are extremely high that you will qualify for what is known as a payday loan or cash advance loan. The payday loan is tailor-made for these kinds of situations where you have an emergency where you need cash right away but don’t have time to wait until your next payday.
One of the main advantages of the payday cash advance loan is the fast approval rate. Your approval will usually come within a couple of hours where approval can be done as soon as verification of your regular source of income can be verified.
Let’s say you have a medical bill that needs to be taken care of right now, or you need to pay your tuition for college classes by the end of tomorrow, or any other “need cash now” type of situation. You’re good for the money, but you don’t get paid again until the end of next week. Maybe it’s something your employer covers with an expense report, but expense reports don’t get processed until the end of the month. A payday cash advance loan is just the ticket you need.
On the downside, a payday cash advance loan should not be considered the same as a personal loan. The terms of a payday loan are such that the loan must be paid in full within a couple of weeks or a month, while the typical personal loan can be spread over several years. Also, the interest rate on a payday loan is prohibitive for someone who wants to spread payments out for more than a few weeks. Since a payday loan typically requires no collateral or credit check, just employment verification and a regular paycheck, it can get approved quickly and give you the cash you need to handle your financial emergency, but be very careful not to consider a payday loan to be the same as a personal loan.
As long as you understand the payday loan requirements, it can be a great financial vehicle for you to stay on top of those unexpected expenses and get the money you need quickly. But if you have time to wait and want to spread payments out over a longer period of time, a traditional personal loan may be a better option for you.