Payday loans are notorious for making financial matters worse for the people that need help the most. They are an alternative that is fast and easy but often starts people in a cycle of debt that is difficult to overcome. Thankfully, there are options for anyone with a regular income if they know where to look.
Why are payday loans not always a good solution?
The problem with a payday loan is that the entire loan and fee must be returned on the next payday. People living paycheck-to-paycheck with a sudden unexpected expense are rarely able to have enough money to pay back the loan and still have money left for their personal needs. To delay this from happening some people request another loan to pay off the first and continue to accumulate fees and create a larger financial hole for themselves.
Why not get a traditional loan?
Not everyone qualifies for a personal loan from a traditional lender because of poor credit scores or a previous bankruptcy. They may not want as much as the bank requires for a minimum loan. It is possible they may not even have the time to wait for the bank to make a decision. It can take days or weeks for an approval, and emergency situations may mean that money is needed immediately.
What is the best solution?
Using a company like MaxLend Loans combines the best features of both types of loans. Approvals are fast and they allow their clients to pay back the loan in installments instead of all at once. It is possible to have the money ready for use within 24 hours of applying for the loan.
There are things to remember when choosing an alternative lending option. The interest rates are much higher than a traditional bank loan and there are some fees involved. The borrower is limited to only $2,000 which may not be enough in some circumstances. However, the companies are upfront during the application period about what the payment amounts will be and when they are due. The borrower always has the right to either accept or decline the agreement based on this information.