Salt Lake City, UT Payday Loan Alternative

Home of the Utah Jazz and the state capitol building, Salt Lake City sits next to the sparkling clear waters of the Great Salt Lake. The city’s population of over 190,000 residents can experience all kinds of natural beauty, and there are also plenty of places to eat and shop. That’s part of the reason that even though the real median household income in Salt Lake City is $65,792 (2015), the average Utah resident faces $3,565 in credit card debt.

The Payday Loan Trap in Salt Lake City

For people who are already dealing with debt and don’t have an emergency fund, any sudden expense is a problem. A typical loan through a bank will have strict requirements and may take days or weeks to process, which leaves many people choosing payday loans instead for their speed and convenience. The problem is that these payday loans also have very short terms, with an average loan term of just 14 days. Payday loan borrowers often find that repaying their loan in full can cause cash flow problems that would prevent them from being able to pay for normal living costs like rent, utilities, or groceries. While there is usually an option to extend their payday loan, this also results in more interest and fees. The convenience of payday loans can cost quite a bit of money in the long run.

A More Flexible Alternative to Payday Loans

Ladder Credit is a lender that offers personal lines of credit instead of payday loans. Like payday loans, they have minimal qualification requirements. Interested applicants need to be US citizens at least 18 years old and must be employed and meet minimum income requirements. They must have their own personal checking account that meets minimum open duration requirements. Ladder Credit does not provide credit to members of the military or their spouses, and additional limitations and requirements may apply.

The application process can be completed online, with a follow up phone verification or interested borrowers may choose instead to complete the entire application over the phone with a Ladder Credit representative.

After account setup, borrowers may request a withdrawal for any amount of money up to their approved credit limit. Withdrawal requests are direct deposited into the borrower’s checking account as soon as the next business day

How Personal Lines of Credit are Different

Ladder Credit customers may enjoy certain advantages in choosing a personal line of credit instead of a payday loan. With a loan, borrowers receive lump sum one time and must pay interest on the entire amount. With a line of credit, borrowers pay interest on the amount withdrawn, rather than the entire approved line of credit amount. Line of credit customers have access to funding provided they keep an available balance on their credit line.

Paying down line of credit balances is also much more flexible than paying off a payday loan. Payday loans require borrowers to pay the entire loan balance by the due date, but with a line of credit from Ladder Credit, customers just need to make a minimum payment to keep their line of credit open. It is important to note though that paying off credit balances quickly will reduce the amount of interest that accrues on borrowed funds.

Borrowers in need of a short term lending solution should look into all available options before make the decision to take out a loan. Whether it is a payday loan or a personal line of credit, it is important for consumers to practice responsible borrowing and assess their ability to meet repayment obligations before signing any loan agreements.

The content on this site is for informational purposes only and is not professional financial advice. Ladder Credit does not assume responsibility for advice given. All advice should be weighed against your own abilities and circumstances and applied accordingly. It is up to the reader to determine if advice is safe and suitable for their own situation.

*Not everyone will be approved

The line of credit account is designed as a short-term cash flow solution and not designed as a solution for longer term financial problems. Additional Fees may accrue if the outstanding principal balance is not paid at the end of the cycle. Credit counseling services are available to consumers who are experiencing financial problems.