As the summer holidays begin, finances are tight for many people anxious to break free from confined workspaces. If you have accumulated higher debt than usual, you may be at a crossroads: hit the open road and travel or stay home and pay down bills.
Short-term payday loans can help you do both. Backed by your paycheck, payday lending provides an alternative to taking on long-term debt. New ways to borrow against your paycheck provide more options.
Early Paydays With Online Banking
One way online banks are courting business is by offering instant loans. Once you sign up for an online banking account and set up direct deposit, you can opt to receive your pay or part of your pay before it is deposited (2 to 7 days, depending on the bank). These early paydays can protect your credit rating by allowing you to cover the rent or bills on time.
Who has not been in a pinch for a few dollars before payday? If you want to borrow money for a few weeks or longer, though, you will need to find an alternative.
On-Demand Hourly Pay Apps
If you do not mind handing over control of your workday to an app, these apps pay you in advance based on the hours you have put in. You will be asked to connect your bank account with direct deposit. Or for the unbanked, some apps provide a debit card with banking privileges.
The catch is, the app will ask to track your work hours. Say you work 15 hours and cash in for the hours worked in advance. On payday, the advance will be deducted from your pay. Borrowers are limited to the amount of hours worked.
Payday loans can provide you with more disposal income over your summer holidays for a few more lobster dinners or more posh accommodations. With a paystub and government ID, anyone can take out a loan as a percentage of their paycheck. For loans of more than a few weeks, lenders offer the option to roll over the loan each payday.
Payday lenders apply various fee structures. Generally, the more flexible the terms of the loan, the higher the interest rate charged to cover the risk.
Short-term loans provide both travel and financial freedom. When you return refreshed from your summer vacation, your travel debt will be paid off with your next pay.