Payday Loans

Should You Borrow Payday Loans To Manage Medical Debts?

People these days are borrowing payday loans for almost every kind of financial emergency; they look toward payday cash advances as easy financing options. When their car breaks down and they don’t have enough cash available with them, they simply go ahead and sign up for an easy and quick payday cash advance. In fact, no financial emergency comes with a warning in

advance. Therefore, people who do not maintain an emergency savings fund often fall into a situation where they have to borrow small amount of cash advance to meet their requirements. Medical expenses in the last few years have been skyrocketing. Anyone can borrow payday loans to manage medical debts as well, but it is very important for you to understand that payday loans are not easy money; they are easy debt. It is a debt which you must repay within a very short frame of time, which usually is not longer than two weeks. Besides that, these debts are risky as well because of the extremely high annual percentage rate that payday loan companies charge. Therefore, whether it is a medical emergency or any other financial need, you must be very careful before you sign up for a payday loan. The general rule is that you should go for it only if there is no better alternative available and only if you can afford the extremely high cost of these small loans. The following information should help you make an informed decision regarding the same.

Looking For Better Alternatives

A medical emergency can turn your world upside down, especially when you don’t have money to meet those expenses. It brings stress and a stressful mind often fails to make the right decision. When you are overstressed, you tend to go for any easy solution that comes your way. Since payday loan is the easiest possible loan that is available out there in both the online market as well in local stores, it is obvious to get attracted toward the same. But, it is very important for you to understand that payday loans are easy to qualify, not easy to repay because of the high charges involved with the same. There are some risky provisions as well that payday loan companies often follow, such as the provision of automatic rollover, as per which your loan keeps on rolling over for another month until you pay it back in full. For a 14-day period, a payday loan of $500 can cost you over $300 just in terms of interest and other fees. When the outstanding balance of these loans rollover, you become liable to pay additional charges at the same high rate for the extended period of time. For example, if you are late by a month, you must expect to pay more than double or triple of the actual principal amount of money that you initially borrowed.

Therefore, when it comes to borrowing payday loans to manage medical debts, you should always look for better, cheaper alternatives first. There can be an array of possibilities; for example, if you visit the same doctor every time you or any of your dependent family member need some sort of medical care, you can request your doctor to accept a post dated check to cover their bill. Likewise, you can use the same strategy with the medical store as will; if you have been a regular customer to them, they will definitely honor your request. If this solution does not work in your case, you can consider asking for an advance from your employer; if you have been a good employee and have been working for the same employer for several years, you are very much likely to get an advance against your monthly salary; in order to maximize your chances of getting an advance from your employer approved, you can also consider offering voluntary overtime.

Overall, whether you should borrow payday loans to manage medical debts or not depends entirely on the specific situation you are in. You are advised to look for better cheaper alternatives first. Go for payday loans only if none of the alternatives work for you. Besides that, you should not make it a habit to obtain a payday loan every time you are hit with a medical or any other kind of financial emergency. You should always follow proper budgeting plan and maintain a decent amount of emergency savings fund to deal with such difficult situations efficiently on your own without needing to borrow any sort of loan.

Custom Search

Tags: , , , ,
Posted in Payday Loan Benefits | No Comments »

Leave a Reply

You must be logged in to post a comment.