The average size of a payday loan is $375. If you’re in need of cash but unsure whether a payday loan is right for your borrowing needs, why not visit our page on “Is a Payday Loan Right for Me“, or read on to find out more about topics including:
- How much can I borrow with a payday loan?
- How long should I borrow for?
- Other things to consider with a payday loan.
People across the country, from California to Illinois are using payday loans in urgent cash crises. Americans are borrowing this money for a wide range of reasons. If you have a stable income, you might consider using one to cover a hospital or veterinary bill, get your car repaired, or fix your boiler.
For Americans, payday loans are sometimes the option necessary to tide them over until payday. However, they are sometimes being used incorrectly. Payday loans are not designed to be used for shopping or frivolous spending and should never be used to make repayments on other loans.
What Is a Payday Loan?
Traditionally, a payday loan is borrowed by those in need of money before (as the name suggests) their next payday. Most Americans are paid by their jobs on a monthly basis, meaning some fall short of cash throughout the month while waiting for their next pay check.
Falling short of cash can happen for numerous reasons, including household emergencies or unexpected car repairs.
Payday loans help to provide borrowers with the money they need when they need it. These types of loans are designed for short-term purposes, with the average loan lasting a couple of weeks. However, Pheabs offers people the option of borrowing from 1 to 60 months (depending on the loan size).
How Much Can I Borrow With a Payday Loan?
Pheabs can help you find loans between $100 and $35,000. The amount you can borrow will depend on your financial circumstances, income, and affordability.
A better question is how much should you borrow…
Consider how much you need to borrow to help you through your difficult financial circumstance. Think about how long you need the money for and if you wish to pay on your next payday or pay in installments.
It’s best to make sure that you don’t borrow too much or too little for your needs to maintain financial stability. Only borrow what you need, and make sure that this is something you can reasonably afford.
How Long Should I Borrow For?
It would be best to consider how long you need the loan to get you through your financial difficulties. You can decide how long you want to borrow the money for and how you want to make repayments. You can choose a period of just 2-4 weeks, which will allow you to reach your next payday!
You can then repay the money in one final repayment. If you need longer to repay the funds, you can choose to borrow for up to five years and pay it back in equal installments each month. You are always able to repay your payday loan early to save money on interest
Things to Consider…
- The most important thing to remember is that payday loans are designed for one-off emergency payments.
- For more significant amounts, consider an alternative loan.
- Make sure you will be able to afford your loan repayments and review your income when choosing how much to borrow.
- Remember: over-borrowing may make it difficult to meet repayments on time.