3 Nuisances of Online Payday Loans to Consider – What to Know
January 16, 2020Most South Africans associate the term “online payday loan” with being able to find, apply, and receive the money they need within a day. Whether the cash is for a friend who needs their car towed or a relative falling ill and needing medicine, there is certainly a time and place to take out an online payday loan. It should come as no surprise that more people are exploring this convenient and easy option at every opportunity.
Although online payday loans are touted as the most convenient way to get cash quick right away, the truth is that it also comes with its own set of troubles. Just like all convenient things, online payday loans come with a few pitfalls that balance out the entire experience of applying for one and paying it off.
The common nuisances of online payday loans
To get a well-rounded and realistic expectation of the online payday loan application process, here are a few nuisances to keep in mind before applying for one:
Nuisance #1: It is vital to repay your loan according to schedule
While online payday loans have been designed to provide as convenience as possible, borrowers are still very much responsible for paying it back on time. Generally, most people struggle to pay their online payday loans off on time because they push back their payment schedules and end up incurring more interest.
Allowing a monthly payment to be pushed back and merged with another scheduled payment can turn into a bigger problem, making it essential to pay according to schedule. Before you apply for an online payday loan, make sure that your financial situation renders you capable of paying it off every month as this will keep you from running into more issues later on.
Nuisance #2: Online payday loans can be expensive in one way or another
The price of convenience with an online payday loan comes in the form of a higher interest rate, which makes for bigger monthly payments. Lenders and financial assistance providers opt to keep their online payday loan interest rates higher than anything else as a means to only be available for those with emergencies. Having a higher interest rate entails more responsibility, commitment, and better judgment. Should you find yourself in need of quick financial assistance to cover an emergency, then online payday loans are for you. If you want cash for a less practical and time-pressed reason, however, then you may want to look elsewhere.
Nuisance #3: Approaching the loan application process requires discipline
As convenient as the loan application process may be, it’s crucial to remember that it isn’t for everyone. Regardless of whether you have a financial situation that needs fixing or a window of opportunity to capitalize on, online payday loans are best for those with enough discipline to keep up. The responsibility of paying on time, being objective about your needs, and remaining aware of your capabilities is essential to ensure a satisfactory online payday loan experience.
Online payday loans, in a nutshell, come with their own set of nuisances that every borrower has to consider. Unfortunately, they are not without their pitfalls. That said, they are a fantastic option for many South Africans who need quick cash to get out of a tough spot. If you believe you can overcome these three issues, perhaps you’re a candidate!
If you’re looking for payday loans in South Africa, get in touch with us today to see how we can help.