Last updated on April 19th, 2023 at 11:02 am
The average size of a payday loan in the US is $375. If you’re in need of cash quickly but are unsure whether a payday loan is right for your borrowing needs, why not visit our page on “Is a Payday Loan Right for Me“. Alternatively, you can read on to find out more about topics including:
- How much can I borrow with a payday loan?
- How long should I borrow a payday loan 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 a payday loan to cover a hospital or veterinary bill, get your car repaired, or pay for home repairs.
For Americans, payday loans are sometimes a necessary option to tide them over until payday. However, they can sometimes be 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 that some fall short of cash throughout the month as they wait for their next pay check.
Falling short of cash can happen for numerous reasons, including household emergencies, unexpected car repairs, or medical bills.
Payday loans help to provide borrowers with the money that they need, when they need it. These types of loans are designed for short-term purposes, with the average loan lasting only a couple of weeks. However, Pheabs offers people the option of borrowing from 1 to 60 months (depending on the size of the loan ).
How Much Can I Borrow With a Payday Loan?
Pheabs can help you find loans between $100 and $35,000. The amount that you can borrow will depend on your financial circumstances, income, and affordability.
How Much Should You Borrow With a Payday Loan?
Consider how much you need to borrow to help you through your difficult financial circumstances. Think about how long you need the money for and if you wish to pay on your next payday or pay in installments.
In order to maintain financial stability, t’s best to make sure that you don’t borrow too much or too little for your needs. Only borrow what you need, and make sure that this is something that you can reasonably afford.
How Long Should I Borrow a Payday Loan 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 When Using a Payday Loan
- 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.