For many students, learning to manage finances on their own for the first time can quickly lead to them struggling to make ends meet. Unexpected expenses can come up at any time and even students with rich parents can find themselves in a financial pickle.
This is where payday loans can help fill the gap and pay for essential items such as food, rent, laundry, books, etc. until your next payment arrives.
In layman terms, payday loans are short-term loans (usually under $1000) that are required to be paid in full from the individual’s next paycheck (max. period of 14 days).
What makes payday loans so popular as compared to other short-term loans is the fact that they are easy to acquire and readily available.
One can simply walk into a payday loan advance store (depending on the state they live in) and walk out with the money they need to pay for all immediate expenses.
Plenty of online avenues are also available where money can be deposited directly into one’s checking account in a manner of minutes after applying.
In order to be eligible for a payday, loan one has to be of legal age, have a valid ID, an active bank account, and proof of bi-weekly or monthly income. This income could be from a full-time or part-time job within-campus or away from campus.
So, as long as you have a steady source of income and a paycheck to prove it you should have no trouble being accepted for a payday loan even if you are a student at a college or university.
As such, payday loans can be a lifesaver for students!
Students can often find themselves in situations where they do not have the money to pay for groceries, food, or rent and have no access to any form of credit. In such instances, payday loans offer a quick and reliable solution to deal with their short-term cash troubles.
It also provides students with a 14-day cooling period that gives them that extra time to come up with the cash they need to pay back the loan amount when it is due. They can do this by either borrowing from friends or family or ensuring they have enough to cover the loan amount and future expenses on their next paycheck (by putting in extra hours at work if needed).
These loans are also extremely easy to access and have much lesser requirements as compared to traditional bank loans. Students with bad credit or no credit at all can also be approved for payday loans as long as they have a steady source of income.
Most lenders don’t require any background or credit checks for loan approval and can offer the money needed almost instantaneously in the form of cash or a direct deposit to one’s checking account.
However, the ease and convenience that payday loans provide come at a cost. These loans can become quite expensive if not paid on time. Students must be wary of not falling into a cycle of debt by repeatedly renewing loans and incurring heavy interest charges, fees, and penalties.
Remember, payday loans are great options for students only if they can ensure that they are able to back the loan amount in full, on the date it is due, and that their financial troubles are only temporary. Students that don’t have a steady income or are unsure about whether they can pay back the loan amount they are able to borrow should refrain from using this service.
There are many instances where payday loans could offer the most viable option to deal with short-term financial woes.
Living independently for the first time in our lives can be extremely challenging. There is so much that one isn’t prepared for and so much that one needs to learn. As a college or university student, if you feel you are struggling with your finances, trust us when we say this; “You are not alone!”. Higher education in the US is extremely expensive and while one is still in university the best job they can hope to get is one that pays minimum wage or close to it.
Without student loans or the financial backing of parents or family members making it through college or university can quickly become an uphill battle. Learning to better manage your finances as early as possible can help save you a ton of money and hurt in years to come.
However, if you do end up needing money urgently and can’t borrow from anyone you know, payday loans are your safest bet to getting the money you need right away. It may cost more but if you are smart and disciplined that additional cost you pay would mean nothing in the greater scheme of things.