who uses payday loans

Who still uses payday loans

Most people think payday loans are kind of a thing of the past. In a world where credit is so easy to obtain who would need a payday loan. Payday loans are a way of getting instant financing for some people. Not everyone’s situation is the same. Allow me to explain why payday loans are still used by many people.

 

Who applies for payday loans

Getting a payday loan isn't a bad thing. All you are doing is getting a loan or advance against your next pay check. There isn’t anything wrong with doing this. Some people can’t get credit for any number of reasons. After the financial collapse of 2008 lenders have been more selective on who they extend credit to. One popular group of people that have been known to apply for payday loans is trade workers or contractors. The reason for this is many of them don’t get paid until a job is done. Take for example a painter name Jeff. Jeff does paint jobs. Work can be very unpredictable. With the pipeline of jobs up and down all the time some weeks he can have a lot of work. Then go a week or two without any work. But the bills of daily life don’t care if he doesn’t have work or not. So. from time to time when Jeff goes without working for a week or two he would need to borrow money and that would be when he applies for a payday loan. Another possible reason is he needs to purchase supplies for the next job he has.

 

Another use for a payday loan

This one might sound surprising because payday loans carry high interest rates. However, people have been known to apply for a payday loan to avoid paying their monthly rent late. Some landlord will let you slide for a few days and allow you to pay your rent a few days late. But not too many of them. Most of them will say your rent is due on the 1st and late on the 2nd period. And there will be a $75 late fee + $25 each additional day you’re late. What if you get paid on Friday the 3rd, but rent is due on Wednesday the 1st? You would end up owing $75 for being late and an additional $25 for Friday. Adding up to $100. A solution to this is getting a payday loan for 2 days for your rent and paying interest on 2-3 days. It will surely be cheaper than $100. To the renters that have that kind of hard landlord I hope you know paydayadvancecredit.com is here to help you if you need a loan.