The average debt amount in the United States has reached $38,000, not including the cost of mortgages. Which explains why some individuals are turning to payday loans as a way to catch up on back payments and stay afloat. Unfortunately, many potential borrowers are under the false belief that they are unable to collect payday loans if they’re on Social Security. This is where SSI payday loans come into play.
If you are currently on Social Security and are looking to receive a payday loan to help relieve some of your financial stress, read on for more information on how to get started.
What is a Payday Loan
A payday loan is an ideal option for those who are looking to receive some financial assistance in the form of a loan without having good or existing credit. Unlike bad credit personal loans and online installment loans, they can be acquired without having to wait long periods of time for confirmation on whether or not you will be receiving the money.
Payday loans are run based upon your overall monthly paycheck and the amount of money that you’re requesting.
Potential lenders will submit an application along with the evidence of their payment and when their next payment will occur. Depending on the quantity of the paycheck and how much the lender is requesting, the borrower will then approve or not deny this application.
If approved, the lender will be asked to submit a check or other form of payment that will be cashed once the payment is completed.
While SSI payday loans work in a slightly different way, you’ll find as you read on that the process is rather simple and just as beneficial.
Common Misconceptions About Payday Loans
Like most areas of finances, there are some myths that are surrounding the concept of SSI payday loans.
Some myths that are false but continue to circulate include:
- You need strong credit for payday loans
- Those on government assistance cannot receive payday loans
- All payday loans come with dramatically high-interest rates
- Payday loans can get paid with any paycheck, not necessarily the next one
If you are familiar with any of these myths, it’s important to educate yourself as much as possible about the realities of payday loans before choosing to take one out for yourself.
Knowing if You’re Eligible for Payday Loans
Contrary to popular belief, in many cases, borrowers that are on Social Security are still eligible to receive payday loans. This is due to the fact that the criteria for payday loans tend to be more based upon monthly income then upon credit or situational employment.
The good news is, in the eyes of the lender, Social Security payments are considered a form of income and therefore can make the individual eligible for payday loans.
What’s Needed for SSI Payday Loans
If you’re interested in looking into an SSI payday loan you’ll be pleased to know that there are few steps that are needed to apply for one today.
In many cases, you’ll be able to apply for a payday loan online, by simply having a copy of the Social Security award letter and some additional proof of income.
The rest of the process will take place like any other payday loan. You’ll be asked to submit a check or form of payment in advance that will then be cashed once your Social Security payment is deposited.
It’s important to know exactly when your next Social Security payment will come in as delayed payments can lead to additional fees.
What to Keep in Mind When Taking Out an SSI Payday Loan
The majority of payday lenders will happily work with applicants on Social Security income, however, this does not pertain to all borrowers as a rule.
You may want to compare options from different lenders before deciding on the best option for your payday loan.
You’ll also want to be well informed on your lender’s fee structure and any additional agreement that is needed before signing on for your loan.
Important Facts to Know About Payday Loans
While you may be eligible to receive a payday loan while receiving Social Security, it’s important to know that you are required to spend the entire amount of your loan.
This means that if you took out $2000, and only spent $1500 been you’ll also be losing the $500 difference in your next Social Security insurance benefit.
In addition to spending the full amount, you’ll also find borrowers are prohibited from loaning the borrowed money to friends or family members. This is why it’s incredibly important to only borrow what you need when taking out an SSI payday loan.
In the event that you have extra money left from your loan, it is advised to spend it or use it to pay off the percentage of your loan ahead of time to reduce the chance of additional fees or interest.
Taking Your SSI Payday Loan Seriously
It’s important to know that your payday loan is a serious responsibility that requires full payment as soon as possible. If you are able to handle the responsibility of handling any loans or debts, then it’s a solid option to help when avoiding rollover payments or additional debt.
Turning to the Right Source for Your Payday Loan
When attempting to find the right SSI payday loans it is important to find a lender that offers transparency, learning resources, and convenience.
Bonsai Finance allows you to take your financial situation into your own hands from the comfort of your own home. If you are looking to apply for your payday loan check out our options today for more information and to request your own loan.
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