Easy Way To Get Money Fix When You Need It Most
Getting a loan from payday companies means that you would be using your pay check as a means of getting quick cash. It can be a fast and convenient solution for your money problems. The processing time has been cut down drastically. You can get an approval on the same day, sometimes after just 1 hour of filing an application. It is faxless, no documents involved and no credit is accepted. In the past, it was required that borrowers issue checks to cover for the loan amount and fees as well, but now no checks are needed.
Those are the advantages of that kind of financial product. How about bad credit payday loans for people on benefits? Is that a good idea? Can people with extremely limited income benefit from this sort of loan?
Getting into A Loan Trap
The simple answer is no. This type of financial product should not be recommended to people with limited income. It places them at risk of falling into a loan trap. They would even be more vulnerable because of the fact that they are actually dependent and they don’t earn their own money. While this form of loan is beneficial because of its fast approval and decision, people on benefits should look towards other financial products first.
Here are some options that you should explore first if you are on benefit:
The overdraft is typically linked to the bank account that is used for receiving your benefits. There are several types of overdrafts that are available, but whichever you choose would be a very convenient means of getting extra money when you need it most.
Some banks will provide personal loans for people on benefits at very low interest rates. It would still be based on your credit score. The higher score that you have, the better the terms that you would be getting. You can get a secured or an unsecured personal loan. The secured personal loan would pose a great risk for you, because of the chance that you could lose what security that you used in case you fail to make payments.
It is actually a lot better to get a cash advance using a credit card than to resort to a bad credit payday loans for people on benefits. The interest rates would be lower when you consider it. In fact there are even zero interest rate credit cards that are available now. With these cards you only have to pay what you actually used with worrying about interest and fees.
Peer to Peer Lending
You can join peer to peer lending groups so that you can get the amount that you need with very low interests, since there are no middlemen involved. The only thing is that you ought to be ready to help out other members.
These are just the options that you need to explore first if you are on benefits.