Payday loans have become very popular in the USA, especially among low-income people. Despite their relative high cost, payday loans provide the necessary financial support to those Americans who do not have the possibility to get it somewhere else and allow them to get out of difficult financial circumstances.
Sometimes one payday loan may not be enough, so many are interested in the question, if it is possible to take multiple loans at once? Here we will help you to get a comprehensive answer.
In general – yes, you have such an opportunity, but it depends:
- On amount you need;
- On your income level;
- On the lender, who will consider your application. None of lenders are willing to take such a risk.
Why you may need more than one payday loan?
Payday loans actually are as an advance of your wages, for which you will have to pay a percentage to the lender. Loans make it possible to make the necessary payments, which are due earlier than the day of your paycheck, and it is not possible to move these payments to another time, or it will cost more than you have to pay for a payday loan.
Of course, ideally you should have certain savings that could help you solve such problems, but unfortunately not everyone has savings for a variety of reasons. If there are no savings, then it is hard enough for a person with a small income to create them anew.
If you have additional problems, then one payday loan, which you could cover with one paycheck, will not be enough, and the lender will no longer issue it. Therefore, there is the idea of several payday loans at a time, which is not a good option, as it entails the emergence of many new problems in the future.
To do this, you will need to apply for several different lenders who do not need to know that you have taken more payday loans before, so as not to be refused. Hence, when the payday loan day comes, you can pay off only one of multiple, and the rest of the multitude will remain unpaid. This marks the beginning of major problems for you, such as constant calls and threatened visits from creditors or collection companies.
How to act if you need more money?
Do not condemn yourself to guaranteed trouble, if you have no other options for repayment, except for one of your wage. The best course of action in a situation where you need more money to solve problems, will be to find alternative solutions. There are several financial instruments that will be available to you even with a bad credit. If you are not sure whether any other credit options are available to you, to find out for sure you can contact financial advisors from a trusted company that has good reviews.
Financial support tools such as credit cards or small personal loans are available to a wider range of borrowers and provide an opportunity to pay off a loan for several payments, not only in one payment from the salary.
Agree that it is better to pay the available amount for several months, than to be subjected to pressure and threats from creditors and collectors, often increasing your debt many times and plunging deeper and deeper into the debt problem.
So, is it worth taking several payday loans at once?
The choice of course is for you, but the consequences of such a decision will not bring you joy. Solving one problem, you will create another no less, and maybe even much more complex and unpleasant. Except one, by taking several payday loans from different lenders, you will force all of them to act to collect debt from you.
Even if you intend to repay all loans over time, considering the level of interest rates on payday loans, your debts will increase several times over this period and this will turn into a beginning of a fall into a debt trap, from which it will be very, very difficult to get out.
Your credit will be hopelessly damaged for several years, even if you ever get to pay it all back. Your financial future will be threatened because of this and you can forget about financing large purchases for many years. But contacting us, you can get a much more acceptable option in the form of a personal loan, fair repayment and building a good credit with time, which will open up many wonderful financial opportunities. You can fill out a personal loan application form on our website.
You can also find a lot of additional useful information about loans and personal finances in our financial blog, and if you have any questions, write to our experts and get a full consultation.