Did you know that the American household has a total debt of about $13.2 trillion?
That’s a staggering amount, but it’s divided among 300 million people in the country. What this means is that the average debt amount per person is about $43,000.
If you’re in a bad financial situation, you might want to know your options. Here is a guide you can read about the pros and cons of secured and unsecured bad credit loans. In this post, you’re going to learn the benefits of payday mobility and how it can help you.
Are you ready to learn what a personal payday loan can do for you? Read on and find out.
A recent Survey of Consumer Finances back in 2016 revealed the highest earning years also had peak debt years. The Federal Reserve conducts this once every three years, meaning it’s expected for figures to rise in the coming one this year. Here is the average debt amount for each age group:
- Under 35: $67,400
- 35-44: $133,100
- 45-54: $134,600
- 55-64: $108,300
- 65-74: $66,00
- 75 and older: $34,500
The debt type is a reflection of where people are in their development as a person and a worker. Here is a snapshot of what each age group:
Under Age 35
Millennials’ greatest debt sources include credit cards and student loans. It’s a disturbing fact, especially since most experts believe that about 20% of these millennials will live their entire life unable to pay for it. It’s also known that these people spend about 40% of their income on non-essential items like clothes and entertainment.
People within this age bracket often suffer from mortgage debt. The main reason is the fact that this time period is when most people start settling down into a permanent home. Couple that with the fact that they’re starting a family, they tend to spend a lot more.
The average housing debt per family is at $93,700. As for credit card debt, around half of the people around this age carry about $2,500.
The trends toward middle age remain at a steady rate. The main difference is the fact that fewer people hold their student loan debt. A lot of people in this age bracket started working before the Great Recession happened.
What this means is that they were less likely to depend on financing compared to people from the younger age brackets.
More than 77% of the families belonging to this age bracket suffer from debt. But compared to younger age groups, their household debt dropped to $69,00. In most cases, people within this age group already paid their student loans and mortgages, but may retain some personal loans online or other loans they took out for personal purchases.
They’re mostly focusing more on saving for their retirement living.
After retirement, the average household debt drops even more to $42,000. Most people at this age spend and borrow money less. Regardless, about 42% of households still carry at least a $2,500-credit card debt.
Over Age 75
Most of the people in this age bracket live with fixed incomes. In a surprising turn of events, the most recent report from the Bureau of Labor Statistics found that more people from this age group continue working compared to others before. It’s expected to hit the 10% mark by 2026.
A lot of experts attribute this to the better health and longevity offered by modern medical practices. But the general consensus is that the main causes include the rising medical costs and lack of savings.
How Payday Mobility Can Benefit You
If you’re searching for payday loans online in the United States, there is a lot you can depend on. It’s a quick way to raise cash and solve a bad financial emergency. The loan is the best means of paying for unexpected or late bills before your salary arrives.
Payday loans can save you from the penalties that come with late payments. It’s payable once your next paycheck is out. That means you’re only in debt for a week or two at the most.
So, what are the advantages of getting a payday loan in American soil over other alternatives? Here are some:
1. It’s Quick and Timely
A lot of lenders that do payday loans will approve your application instantaneously. This happens as long as you give the information needed to complete it. The application process isn’t as slow as other conventional loans since you don’t need to fill up a lot of forms.
It might take a lender a few hours to transfer the funds to your account. But in most cases, you can get the funds within the same day. The slowest ones in the industry will often deliver on the following business day.
The quickest lenders can transfer the funds within the span of an hour if you give the necessary information fast. There is a large number of lenders that push others to make their services quicker. It’s to ensure that they remain competitive and relevant.
Compare this process to conventional loans and credit cards. You’ll see that these will take a lot of time to process. The ideal timeframe is within several weeks before you can get funding. These can’t help you if you need money due to an emergency.
In some cases, you might even get rejected by the lender. When applying for payday loans, you can get feedback within an hour or two. The best part is that, in the off-chance you’re rejected, you can get funding from another lender at a rapid pace.
2. It’s Convenient
When applying for a payday loan, you can rest easy since all interactions and processes are online. No need for you to book an appointment or call lenders to get the cash you’ll borrow. After all, you can send your application within the convenience of your home or office.
In comparison, traditional loans require you to attend several meetings with your assigned loan officer. Credit cards aren’t as good as payday loans since the latter gives you cold, hard cash. The former can only let you buy goods or pay for services.
The cash you get from payday loans online no credit check will allow you to spend it on anything. It doesn’t matter whether you’re paying for your electric bills or repairing your vehicle. A lot of traditional loans get issued to spend for a specific purpose.
As an example, you can only spend a car loan to get a car. Home mortgages don’t serve any purpose other than buying properties. With that said, the paperwork involved in these loan types is tedious to do.
Payday loans often only require you to show proof of your income. What this means is that you can often fax the necessary documents within a few minutes. Some lenders won’t ask any documents at all.
3. It has Minimal Requirements
Payday loans no credit check are easy to access since you only need a few basic requisites. The most important among these is a stable income source. As long as your source is consistent and verified, you’re almost guaranteed to get a lender willing to transact.
Most traditional loans, on the other hand, need collateral. Payday loans only depend on the fact that you have a stable income source to pay for the loan. Other requirements include an active checking account as well as a permanent resident registration in your state.
It’s also required for you to be at least 18 years of age. It’s often an afterthought since you most likely have a stable job once you hit this age. Most commercial lenders will ask for your credit score when you’re applying for their loan.
Low credit scores often make it harder for Americans to get conventional loans. It’s especially the case since one-third of Americans have lower credit scores. But as long as you present proof that you have the means of paying it on time, you can get a personal loan with bad credit.
Most online lenders will still check your credit score. But their decision depends more on your current financial situation. Your past mistakes or struggles will not hinder your access to financial help.
4. It Qualifies for Higher Amounts
A lot of payday lenders will limit the amount most new borrowers can get. What this means is that you can only borrow an amount within your salary range. But if you pay for your first payday loan on time, you might get an increased amount in your next applications.
The amount your lenders can give for payday loans can also depend on your state laws. Lenders will tell you the maximum amount you can get when you apply. That’s why it’s important to establish a good relationship with the lender you choose—they’ll give you a quick solution to financial troubles.
5. It Protects Your Credit Rating
Payday loans have short repayment periods. It’s actually an advantage, especially when you’re looking to protect your credit rating. After all, anything can happen within the span of a year if you’re applying for an installment loan.
For example, you might lose your income source or get ill before you finish the repayment process. If you’re depending on one source of income, you will miss installments. Defaulting on the loan will make your credit score look worse.
Credit cards might seem convenient, but you need to control your spending habits. This is a hard thing to do, as confessed by most card holders. It’s especially the case when you’re holding multiple credit cards.
6. It’s Available 24/7
Emergencies can hit you at any time. Whether it’s a house fire at night or an accident during the day, you might end up needing lots of cash in a short notice. Most lenders can’t ignore this, thus most payday lenders are open no matter what time of the day.
This allows you to get your process requested as soon as you send your application. Again, with most personal loan no credit check lending services available online, it’s more convenient and timelier for you. That means you have more time to do your best and get out of your emergency situation.
7. It’s Legal and Regulated
The United States see payday loans as a legal form of financing. It’s regulated on a federal level as well as on a state level. Lenders aren’t allowed to overcharge in their interest rates or cut corners when trying to recover loans.
A lot of lenders are part of a network—fully licensed and accredited. They’ll give you a clear idea of their terms and interest rates. The lenders will outline the amount you’ll borrow as well as the amount charged.
They will also put the repayment date as well as other conditions. It’s important for you to read these documents before you proceed with the transactions. Most reputable lenders also put their terms and conditions in their website’s FAQ section.
The best part of this is the fact that payday loans are short-term when it comes to commitment. That means you’re only expected to pay once if you’re able to on the agreed repayment day. You won’t need any monthly installments as well as ongoing interest payments unless you fail to pay it on time.
Get Payday Mobility Today!
If you’re in need of financial assistance, there are a lot of types of quick loans you can avail. The most common one among these is payday loans. It has some negative press due to unscrupulous lenders, but in most part, it’s legal and regulated.
There are lots of lenders in the market, but some of them are predatory. It’s easy to avoid them, as long as you do your research and search for reviews online. If you’re still on the fence about using these quick personal loans, you can use this guide as a means of knowing how it can best benefit you.
Do you need to consolidate your debt even if you have bad credit? Check out our post here and learn about how debt consolidation loans can help you. It’s an easy guide to help you get started. Here are some other articles you might find helpful: