Yes! You can get a payday loan while receiving government benefits.
Many lenders view these benefits as a valid income source. However, it's crucial to carefully review finances to ensure you can pay off the loan when it's due...or bad things happen. 😬
Learn: Can I get a payday loan on disability?
Payday loan lenders usually do not care how you get your income. They are more concerned with how much you're earning and how regularly it hits your account.
That means regular government benefits can count as income in the eyes of a payday lender. This can be disability, unemployment, or any other type of public assistance.
However, it's not all roses. Payday loans can quickly turn from a temporary financial solution to a long-term problem. They are notorious for substantial bi-weekly fees and eye-gouging additional fees if you can't pay when the bill is due.
Learn: Can I get a payday loan with unemployment?
For this reason, it's not uncommon to find yourself in a vicious cycle — rolling over your payday loan and piling up the debt.
Also, remember that payday loans are not legal in all states. Therefore, you'll need to verify whether your state allows them before proceeding.
If you're on benefits and contemplating a payday loan, take a pause! Make sure to explore all your options first — there could be more affordable alternatives out there. If you opt for a payday loan, ensure you have a solid repayment plan. Let's keep our financial health in check.