Payday loans can help relieve some of your financial burden in times of need. Let’s say you have reached the limit on your credit card, your payday is a few weeks due and no one in your family can lend you money at the moment. You can use a payday loan service to borrow some money that will be deducted from your salary.
Payday loans usually carry a one time interest to be paid in full with the loan. It also includes penalty fees if you default and extension fees if you are unable to pay the loan within the specified time.
Although payday loans are helpful when other means seem unlikely, they can be very hard to secure, especially if you do not have a good credit score or employment history. This problem gets even bigger if you are on disability.
According to state reports, approximately half of those on disability are unemployed and a bigger percentage of those employed work part time. Lenders tend to restrict loans awarded to unemployed applicants, but this is only the tip of the iceberg. The challenges of securing disability loans go beyond skeptical lenders.
People with disability have the same problem as able people with some additional pressing needs. Most use special equipment and devices to run their daily errands. The devices need regular repair, servicing and maintenance. You might also need a new one from time to time.
Besides equipment repair, those on disability still have to deal with higher service fees charged by taxis for instance. Unfortunately, their loan limits are also quite low since their disability benefits are not as high as conventional salaries.
Payday loan solutions for those on disability
There are various ways to go about securing and paying your payday loan. One good thing about disability benefits is they always come in time and lenders see this as an acceptable source of income. However, loan repayment can be difficult. Most payday loans are required to be paid within two weeks.
If you are unable to clear the debt plus interest before the deadline, you will be required to pay an extension fee and this can go on for months. To escape this trap, you should find a more suitable plan for loan repayment.
You can talk to your lenders for an extended payment plan (EPP) which allows you to pay the loan over an extended period without the interests and penalties as long as you do not default the arrangement.
If you have other loans such as student loans and mortgages, you can negotiate for loan restructuring to pay lower installments and use the extra to clear your outstanding payday loan. You may also consider cutting down flexible expenses such as cable TV.
There are various aspects to consider before taking a payday loan. Most financial experts advise that such loans should only be taken when there is no other solution to your financial issues.
For those on disability, it is important to carefully review the plan and determine whether it is ideal for your case. Make sure you are able to repay the loan in time or negotiate a deal that allows you to repay without forfeiting any requirements.