Payday Loans Up to $2500 or $5000If you’re looking for payday loans up to $2500 or $5000 you won’t have much luck at many conventional payday lenders. That’s because the average American doesn’t make the sort of money that would allow them to pay that much back in a two week period.
What you’re more likely looking for is what’s called an online loan. These differ from payday loans by not having to confine themselves to the limits imposed on payday lenders by states, and lets them loan out larger sums. The other difference is that these are paid back in monthly installments, and not all due on your next payday.
The kicker is that unlike payday loans, the fees charged for these types of loans can be sky high, and higher the longer you take to repay it. Some are even set up to charge you a monthly fee, leaving the balance intact until you get around to paying it off. This means that you could borrow a lot and not get charged much if you pay it off quickly, but if you get stuck with the monthly payments every month for a long time, you’ll be throwing money out the window, and not touching the principal balance at all.
Payday Loans Up to $2500 or $5000? Not Exactly.
For a loan of that size to be considered a payday loan, a person would have to make ten thousand dollars or more a month in order to pay the loan off and still make it to next payday. Most people don’t make that much money after taxes, and are usually only looking for less than $1000 to get out of a financial bind. If they have a few thousand dollars left over after taxes each pay period, they should be able to pay back the loan amount and be alright until they get paid again.
It’s a lending business that caters to the majority, and not the 5% of people making that higher income that would want or be able to pay back that much at once. So now that we’ve established that you’re not getting what’s referred to as a payday loan when you’re taking out thousands of dollars at one time. But maybe you find that you need a large lump sum, even though you don’t make enough to justify it, and you’re OK with the idea of making monthly payments. Is an online loan something you should get involved in?
The Perils of Online Loans
You’ve probably seen ads that say you can take out big lumps of cash like $2500 or $5000 and thought to yourself that that would solve all of your financial problems, and then you could simply concentrate on paying that one loan back. But the insidious nature of financial struggles is that they seem to compound on themselves, and once you get in over your head, you tend to stay there until you stop doing the things that got you in trouble in the first place.
By taking out such a large amount, and obligating yourself to a monthly payment, plus repaying the loan at some point, you are going to deliver a powerful blow to your morale and motivation, and this can put you in a mental state of mind that will keep you in debt, and keep the financial problems coming. You’ll never have that feeling of being on top of things, and feeling empowered when you see hundreds of your dollars going to a loan that only provided short term benefits.
Assess Your Real Needs
In all seriousness, you probably don’t need five grand all at one time. It may sound like a good idea, but few problems pop of of the five grand kind. You don’t want to loan out money that you don’t earnestly need, because you are paying for it with your future effort and hard work, and you don’t want to resent yourself for doing this to yourself.
Getting behind the 8 ball financially can be very stressful, and the best way to get things right again is to do your best to alleviate that stress. Taking on more obligations and putting yourself further in debt is a proven way to increase your stress levels, and get into some real trouble later.