Need an Extra Payday? See How Many Payday Loans You Can Take Out at One Time
February 15, 2019 | Louis Tully
Can you take out more than one payday loan? First of all, it’s not advisable for anyone to take out more than one payday loan at a time. In fact, consumers should think twice before even taking out the first one. Payday loans are a very specific type of loan designed for a very specific situation, namely, to fill the gap between paydays (hence the name). Relying on payday loans for anything outside of that purpose could easily allow consumers to trap themselves in a spinning cycle of borrowing more, thus owing more in the process.
While most lenders refuse to approve multiple payday loans anyway, some consumers have found a work-around. They slip through the cracks by obtaining payday loans from various lenders in their area. However, most lenders have wised up to this tactic and will check to make sure you don’t currently have a payday loan open before beginning the approval process. So, not only is having more than one payday loan not recommended, it’s not easy to accomplish either.
But if that doesn’t put your curiosity to rest, here’s a closer look at why you shouldn’t take out more than one payday loan at a time.
Having Multiple Loans Open Is a Bad Idea in General
Any financial advisor will tell you that having too many credit sources will only hurt you. Yes, the spending power you have in the short term is great, but pretty soon, you’ll have to pay all that back, plus interest. It’s like a pizza: it’s so good at first, until you get hit with the acid reflux and unthinkable stomach pains.
With that said, having loans open for certain things like your home or your car is perfectly acceptable and even necessary. But if you start to take out a loan every time you hit a financial pothole, that’s when things start to get really bumpy. And in the case of payday loans, if you’re trying to take out more than one at a time, you’re going to end up with more on your plate than you can manage. Chances are, you’re probably dealing with a financial situation that calls for a different kind of loan altogether anyway. One big loan is easier to handle than a handful of smaller ones.
If you need to borrow more than $250, you should consider taking out a bigger loan altogether rather than taking out multiple payday loans in one sitting.
Payday Loans Aren’t Meant to Relieve ‘Big’ Financial Stress
As we said, a payday loan is not tailored to fit long term financial struggle. If you’re buried in debt or recently lost your job, there are several other options out there available to you, but a payday loan is not one of them.
Now, if you’re in need of a small pick-me-up after receiving an underwhelming paycheck, a payday loan is an option to consider; assuming you only need one. To put it in perspective, the financial relief needed should be big enough to merit borrowing the money, yet small enough to be able to pay it back in full by your next payday. There aren’t too many instances where this is the case, but they do exist.
The more cash you need, the bigger the loan
The problem with taking out more than one payday loan at a time is that they all have to be paid back in a relatively short amount of time. There’s no sense in taking on that much credit if you’re only going to have a couple weeks to pay it all back.
Take a close look at the problem and figure out exactly how much you going to need as well as long it’ll take you to pay it back. If it doesn’t look like one payday loan will cut it, then none of them will. Consider a bigger loan; one that offers affordable rates and plenty of time to pay back.
Again, payday loans offer fast financial relief when just a small boost is all that’s needed, but anything outside of that is going to require something with a little more fiscal flex.
Payday Loan Alternatives
Now that that’s out of the way, it’s important to note that there are other options out there that are available to you. If your financial need is bigger than a payday loan can fill, consider some of these alternatives.
- Personal loans: Personal loans can be found just about anywhere. With competitive rates, flexible repayment terms, and generally good customer service, personal loans are a popular choice.
- Refinancing: If you’re short on cash, refinancing your auto loan or even your mortgage could save you money. Talk to your bank today to see if this is a good option for you.
- Installment loans: These loans release typically have an equally lenient approval process but offer more credit with more flexible repayment terms. Talk to your local lender for information.
How to Avoid the Need for a Loan in the First Place
Now, the best cure for financial restriction is to prevent in the first place. Maybe you couldn’t prevent it this time around, and that’s okay. You can always contact your local lender for fast financial relief. But in the meantime, you should start working today to set yourself up for a better tomorrow. Here are just a few things could start doing to avoid the need for a payday loan (or any other loan for that matter).
- Maximize your cash flow: There are many ways you could maximize your income. You could ask your boss for a raise, pick up a part-time job, freelance, or even sell some unwanted clutter.
- Shop carefully: By changing what you buy and how much you buy, you could drastically change your money situation. Swap big brands for the generic version, only buy what you absolutely need, put a cap on your entertainment budget, and give thrift shops and dollar stores a try.
- Diet and exercise: Taking care of yourself saves your health and subsequently saves you money at the doctor. Plus, it introduces a new mood-booster that doesn’t involve treating yourself at the store.
- Make a budget: If you want to improve your finances, you need to have a budget plan. Understanding where your dollars need to go can greatly improve financial wellness.
- Start saving: Saving money doesn’t have to be hard. Learn these small ways to save $100 a month.
- Show some gratitude: A little gratitude goes a long way. By showing appreciation for what you have, you won’t feel the need to accumulate more. Once again, money saved!