Did you know that 12 million Americans will use a payday loan this year? A payday loan is a short-term lending product that provides people with bad or no credit the opportunity to access urgent funds. Typically, payday loans are marketed towards individuals with poor credit because they are the least likely to qualify for traditional loans and other forms of funding. Payday loans are a lifeline; however, they can be a very expensive lifeline.

According to the nonprofit Consumer Federation of America, the annual rates paid on payday loans ranged from 390 to 780 percent. We’ll let that sink in for a minute. Most payday loans are as little as $50 or as high as $1,000. While they are marketed for emergencies, the truth is that most Americans who access this form of expensive funding are doing it just to get by.

They are taking on debt to pay their rent or utility bills, and they are doing it at a very high cost. They are also more likely to need a payday loan in the future because they are digging themselves further in the hole by taking on more debt. It’s an endless cycle that preys on the poor.

What Alternatives Are Available to You If You Want to Avoid Payday Loans?

Financial experts will go over the usual suspects when they discuss personal financial management. They will say that you should consider reducing your expenses or getting a second job to add income. While these are all good practices, they are not going to help if you need cash now. If you don’t qualify for traditinal lending, don’t have enough credit, or can’t borrow the money from family and friends, a payday loan may seem like the only option.

At SenecaOne, we wanted to offer an alternative that would provide our clients with the funding they need without spending a fortune in fees. We are proud to announce our Annuity Loan Payment Program, which was designed specifically for annuitants who need fast funding for an emergency or other “life happens” moments. We do not disqualify you if you have poor credit; all you need to qualify is a structured settlement or annuity from prize winnings you’re actively collecting payments on. Your structured settlement is your qualifier.

Advantages of the Annuity Loan Payment Program

  • Application processing is fast and you could potentially receive cash the same day you apply.
  • You can borrow up to $2,500 at a fixed rate of at most 9.9%.
  • Payback terms of structured settlement loans can extend up to 12 months.
  • There is no need to seek court approval as you are not selling any of your payments.

If you are in need of cash now, you may feel desperate and willing to accept anything. However, a payday loan is often not worth it. Contact us today to learn more about the program and apply for a loan.

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