Tips for Taking a Payday Loan during the Corona Crisis
Well, the Coronavirus outbreak has resulted in tens of thousands of layoffs around the country. Many food service workers or hourly employees have been laid off as businesses either close temporarily or reduce staff to follow federal and state guidelines.
These will be tough times over the next couple of months until the virus spread abates, and we start to see some return to normalcy. Hopefully, the warming temperatures as we get later in spring will help along with the isolation practices currently in place.
But what if you need cash now and can’t wait for the government checks to go out, which may not be until mid-April or later?
Some states have said that you can skip your rent payment for up to 90 days with no penalties of any kind, and tax returns are delayed to July 15. But that may not be enough for many people.
First, if you have a tax refund due, e-file immediately. The IRS is expediting payments on tax refunds, and you could get yours in a short time. Also, check to see if you have any room on your credit cards and also ask your card companies for a higher credit limit on your account(s). This will only work if you have been making your payments on time.
Related Article: COVID-19: How Payday Lenders May Help You Stay Financially Stable
You may get some assistance from family or friends, but most of us can’t count on it as they are also dealing with these tough circumstances.
You could also get a loan for consolidating all your credit cards and loans into one and have a lower payment by doing so. But you will have to have good credit to get approved.
A Payday Loan Could Help If You Have a Steady Income
If all else fails, most people can get approved for a short term payday loan. Payday loans are not recommended for most people in these unusual times, but they can provide a way to get cash very quickly for emergency needs. Don’t get a payday loan if you have no way to pay it back when it is due, which is always no more than 1 month from the loan date.
Perhaps, you have a steady unemployment income, but your first check is ten (10) days away, which is very common. A payday loan could help in this short time for any emergency bills you have to pay. And, if you have a disability or social security income, you may qualify as well for a payday loan. Both of these qualify as steady income sources, which is the number one qualifying factor.
No matter what, be careful when considering high fees short term loans like payday loans or even installment loans (although these have longer payback dates). Loans add debt, which you want to avoid, if possible. If your income is lower now, taking on more debt may make things worse, not better.
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