If you’re wondering about whether an instant payday loan is the choice for you, check this out – we’re sharing everything you need to know about this tool.
Let’s face it – we’ve all been in situations where an extra $100, $300 or even $500 could have done us a world of good, and gotten us out of a pretty tough bind. Emergencies that cost us money crop up from time to time.
If those situations happen to you frequently (or you want to be prepared in the event that it does happen), then you’re obviously looking for a solution. That’s probably how you ended up searching for instant payday loans.
Sure, you’ve heard some talk about them. However, if you want to find out for yourself, you’re in the right place.
Let’s take a look at instant payday loans, and if they’re really the solution that they’re made out to be.
Payday loans are what they sound like, and a little bit more
Loans are money that you can get on the condition that you pay it back by a set amount of time. Therefore, payday loans are a type of loan. They’re typically for a small amount of money. They get the name from the fact that you’re supposed to pay it back by your next payday.
They are small, short-term loans or “cash advances” that you get to fix an unexpected situation. For example, you may get a parking ticket that you didn’t expect or you might have an urgent bill arise that you can’t pay at the moment.
To put it into perspective, look at this scenario:
You work at a retail store, making $18.65/per hour. You’re cycling on your way to work one morning, and as you ride across the road a car comes out of nowhere and hits you off your bike. The driver speeds away before you can catch their license plate number. That leaves you with a totaled bike, and possibly medical bills even though you’re not seriously hurt.
All you have is $45 in your savings account. Your job doesn’t provide you with health insurance, and you need your bike to make the 45-minute commute to work in the morning because you can’t afford public transit. A new bike is going to cause you at least $250, and there’s no telling how much your medical bills could come to.
In a situation like that, a payday loan would be perfect for you. That’s what they’re about – access to money now, to remedy a situation that has arisen that will put you in a real bind if it isn’t resolved.
That beg’s the question of where do instant payday loans come into play.
So, what about instant payday loans?
Instant payday loans are an expedited process of the situation above. With some loan companies, a payday loan can take a few days to be processed and reviewed. That can be a real inconvenience if you’re in dire need of money.
However, instant payday loans mean that you walk into the lender, fill out a quick application form, and leave with the cash in hand that you need. Or, it’s transferred to your bank account shortly after. Whatever the case may be, they’re instant as the name suggests.
With all that in mind, are instant payday loans instant solutions?
Needless to say, instant payday loans are a great help if you’re in need. However, there a few things to consider before taking on.
The first thing to note is that payday loans typically have a higher interest than loans from the bank, and can be expensive. That being said, if you can’t afford to repay the loan in full including the interest once you’re cheque comes don’t take the loan, or borrow an amount you can afford to repay.
Additionally, taking an instant payday loan has some distinct advantages:
- Payday loan lenders have longer office hours than regular banks and are more flexible. This allows you to feel more at ease. You can negotiate, and you can rush in, in the event of an emergency.
- There is no bank loan application. Most lenders only need your name, employment information, and contact information of you and a few of your friends and family.
- Applications are reviewed promptly, and often processed in a few minutes or hours. You’ll get the money you need very quickly to solve your problem.
- These loans are short term, and the average length of these loans are about two weeks. This means that once you repay them, you aren’t in debt for an extended period of time, which can be stressful.
For the right person, an instant payday loan can be a saving grace. Done right, instant payday loans are great!
What precautions do I need to take?
There are some guidelines that can ensure that you get the best out of payday loans. Here are a few:
- Do not take multiple loans from multiple lenders. If you need more than the amount of money that a lender can give you, do not try to accumulate money by taking out payday loans from different lenders. You’ll be setting yourself up for disaster. Take only one payday loan at a time.
- Be responsible. If you borrowed $300 to pay for an emergency that turned out to just cost you $150, don’t spend that money frivolously. Put it to good use, so that you can easily repay the loan when the time comes.
- Ensure that you read the fine print. Some lenders have fees that skyrocket to astronomical amounts once you’re even a day late on your repayment. Make sure that you’re aware of all of these kinds of setups.
Truth be told, some payday loan lenders can be sleazy. So, where does that leave you? What do you do?
You need a lender that’s committed to the greater good of their clients and helping them out of tough situations. In other words, you need Cigno Loans. We’re a loan company offering a wide range of loans for the working Australian.
Visit our contact page, for information on how you can take advantage of some of our amazing offers. You’ll never have to be in a financial bind again – we’re here for you!
Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.