There are new and emerging trends when it comes to cash advance loans that anyone interested in using them should know about. Whether you’re looking for one right now or sometime in the future to help with whatever financial needs you have, here are the top ways they can help you. This is according to a Pew survey recently conducted that asked Americans their go-to ways to use payday loans.
- Avoiding long term debts. One of the most popular reasons Americans turn to payday loans is because they want to avoid long term debt in order to better focus on short term financial issues. Long term debts take weeks at a time to be approved when asking for the loan and that debt is also going to take a longer time to pay back. But with online options and quick approval times, payday loans become very ideal in those “right now” situations.
- Not having to ask family members. When you’re in a tight spot with money and need a quick loan to help you float over until the next paycheck, the last thing many people want to do is ask family members for help. This can put a strain on relationships or family can even outright refuse to help and the fallout can cause even more stress. That is why the Pew survey noted most people turn to payday loans instead of family for this very reason. Also, it can be embarrassing to talk about your monetary troubles with family, when instead a simple sheet can be filled out. There are no invasively personal questions asked when it comes to cash advance loans, and there are no judgments.
- Express loans for monthly expenses. In the same vein as avoiding long term debts, many people are in a similar situation every month: they are low on finances and have to either sacrifice a monthly bill or turn to payday loans to help with those immediate troubles to pay off all monthly expenses on time. Going with the payday loan route avoids possible eviction from your home, having your electricity turned off, or other troubles that can snowball into bigger issues when you miss an important payment. Fast turnaround with cash advance loans will get rid of that stress.
- Transparent and straight forward terms. Unlike confusing loans from the bank that you can be denied after all the slow moving paperwork is completed, payday loans have very clear and transparent terms and contracts that anyone can easily understand. The payday lender will tell you the interest rates, charges, and fees right at the beginning, and it will be stated clearly in the paperwork as well.
- Avoiding overdraft fees on bank accounts. When you overdraw from your checking account, things can instantly become more expensive and that means a big headache for you. The survey discovered that when trying to avoid overdraft fees, many people will go to payday loan alternatives instead and with good reason. Many banks “double up” on overdraft fees, making them very expensive for the person and put them back by hundreds of dollars because they might have overdrawn only by a couple bucks. If you’ve experienced the same thing and want to avoid it in the future, a payday loan could be the answer.
- Immediate funds for “rainy day” scenarios. Rainy day money is typically savings that can help during those surprise expenses in a given month. Extra car maintenance, pet bills, unexpected doctor’s visits, and many other pop-up expenses can be a very big hassle if that savings account has been depleted for other bills. However, research shows that a big majority of Americans use cash advance loans in order to get by when those “rainy days” show up. Instead of having to compromise on a bill or neglecting to pay it at all, payday loans can be quickly approved and help out immediately. No wait, and no frustration from unexpected payments.