Yes, it is possible to get a payday loan to help pay off any debts that you have accrued from gambling losses. However, it may not be the most sensible choice and you should think carefully about whether a payday loan would be the best option for you.
Payday loans are designed to help customers in need of fast cash for an urgent expense that cannot wait until they receive their next paycheck on their upcoming payday. Common uses of payday loans include to pay for an emergency medical bill, funeral cost, rent or unexpected car repair.
With 85% of Americans admitting to have gambled at least once in their lifetime and the gross gaming revenue of the US gambling industry reaching nearly $53 billion in 2021, it is not surprising that some may come into losses during this activity and may wish to consider a payday loan. This guide discusses options available to those facing gambling losses, and the implications of borrowing money to pay off debts.
Can I Get A Payday Loan For Gambling Losses?
Yes, you can borrow money by applying for a payday loan to help relieve gambling debts. Before doing so, it is important to be aware of all the implications and fees that you could face. You must just make sure that you will be able to comfortably afford paying back the loan as if you fail to meet the repayment deadlines you could face extra charges and interest fees. This could lead to a negative spiral of further debt which would be stressful and negatively impact your credit score.
It is important to think carefully about if a payday loan is right for you. Gambling addictions are a very serious problem and can lead to financial problems. So if you are struggling to pay off gambling debts, the chances are that you could then struggle to pay off a payday loan. So if you apply for a payday loan, make sure you have a clear plan on how you intend on repaying back the loan.
How Much Does a Payday Loan Cost?
Based on an example of borrowing $500, a payday loan could cost you $46.23 in interest for 2 weeks, or $92.27 in interest over 4 weeks, or $273.95 in interest on top for 12 weeks.
This is based on a rate of 500% representative APR and the longer you keep your loan open for, the more interest that accrues. The rate of interest and APR that you are charged will depend on multiple factors including your age, credit score, income, residential status and other outstanding debts. Whilst the 300% to 500% APR rate is offered to around 51% of payday loan customers, this may be higher or lower depending on your circumstances.
What Are Alternatives To Borrowing A Payday Loan For Gambling Debt?
Some alternatives to a payday loan include borrowing money from family or friends or using a low-interest credit card if you are confident you will be able to pay back the money on time. Authorized overdrafts are another potential option or you could consider asking your employer for an advance on your paycheck. You could also sell unwanted items you no longer need through a garage sale or via online platforms such as eBay to get a few extra dollars.
Can I Get Help To Deal With My Gambling Debt?
If you are feeling worried about your gambling losses, it is definitely worth chatting to someone about your problem for support. A Gamblers Anonymous group may be of use or speaking to a close friend or family member. Debt management companies are also available to help you get back on track with your finances.
Another option is a debt consolidation loan. This allows you to consolidate all of your debts into one single loan payment, possibly even at a lower interest rate.
It is also advisable to try to stop gambling from then on to prevent any further losses. Ways to make this easier include asking gambling companies to stop serving you or asking your bank to put a limit on what you can spend on gambling sites. You could even use a software to block access to gambling websites on your phone or computer.
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Justine is a full-time writer with lots of expertise and a wealth of experience in the financial world. In particular, she specializes in household income and consumer finance across the United States. Follow her articles for useful advice and top tips, guides on how to save money and lots more.