Using a Payday Loan When You Still Have Student Loan DebtCan you use a payday loan even when you still have debt from student loans? And should you? These are important questions to ask if you want to make the best financial decisions for your present situation and for your future. A student loan can be a big burden that follows you for years, but once you have it you have to deal with it. A payday loan on the other hand can be a useful short-term tool that gets you out of binds with bills and other costs. Here’s what you need to know about having both.
A Student Loan Needs to Be Paid off, Eventually
Student loans have to be dealt with or you will feel the burden for the rest of your life. Being debt-free, or at least being free of harmful debt, is important for your future. But, the good thing about student loans is that you don’t have to pay them off immediately. You can take your time if you need to, even if it is more desirable to get rid of them as soon as you can.
A Payday Loan Gets Paid off Quickly
A big difference between a student loan and a payday loan is in how quickly they are repaid. With a payday loan you get approved mostly based on your income and your regular paycheck. Once approved, you get the cash right away so you can use it for pressing needs. Then, when your next paycheck is deposited in your bank account, you use it to repay the loan in full. This quick process ensures you don’t add additional long-term debt and that the loan is affordable.
Use a Payday Loan for Immediate Needs
A payday loan is perfect for any immediate financial needs. As long as you have a job, this is a sensible way to get quick cash and to get a money problem taken care of quickly. For instance, if you have a bill due at the end of the week but you’ve run out of cash, maybe because of making a crucial student loan payment, a payday loan can provide the quick cash to get it paid. With this extra cash you can make sure all bills are paid on time, even when you run out of money and payday is still a week or more away.
A Student Loan May Have Damaged Your Credit Score, but You Can Get Approved
If you have had trouble repaying your student loan it has probably impacted your credit score. This doesn’t have to affect your ability to get a payday loan, though. This kind of loan is approved based on your income and the fact that you have a regular paycheck much more so than on your credit. It is possible and also likely to get approved even with poor credit.
So should you get a payday loan even when you have student loan debt? The answer depends on your needs and other factors, but for most people this is a reasonable situation. You can use the payday loan quickly, take care of bills, and get it repaid in no time. Then you can focus back in on your student loan payments.