“Precipitation can bury you in a never-ending predatory cycle of debt.”
Short-term loans are like medicine; if used correctly, they save your life and if overdosed, it can be lethal. Direct lenders are always right behind you whenever you need a small chunk of funds. They will lend you money despite your poor credit, but they will not like to risk their money. Therefore, they charge high-interest rates.
When it comes to taking small loans, you always ask - which loan is best, but you should ask - which loan is best for you. Payday loans for bad credit are popular among borrowers as they can be applied online and funds are transferred at once.
Payday loans carry high rate of interest because borrowers default at a higher rate than those with the perfect credit score. Before you settle on a deal, consider both types of loans.
Lump sum payday loans
Lump sum payday loans are immediately paid as you get your next payday cheque. Ask your lender if they have a clause of instalment payments. Lump sum payments cause a huge burden and eventually you will end up with taking a new loan.
Instalment payday loans
Not all lenders offer this option. This is quite affordable because you will pay your whole debt in a small size of regular instalments. Paying a small chunk of the loan is always easier than lump sum payment, especially when your budget has a big hole.
Wrapping up
You can get payday loans instantly even if your credit history is bad. However, you must have a full-time employment to be eligible for these loans. Since they attract high-interest rates, you should prefer instalment payday loans.
