Times When Payday Loans may be a Good Option
Considering today’s high living costs, stretching your pay cheque is more difficult than ever, especially if you have a family to provide for. Every now and then life will throw you some extra expenses that are very difficult to afford. A payday loan can be a helping hand to get you through a financial crisis, or simply to get you through till next payday.
Payday loans can be useful when:
You don’t have anyone to turn to for help
In times of need, not all of us have many options available. Many expenses are unexpected, meaning they have not been budgeted for. Sometimes insurance won’t help with these expenses and there is only so many times you can ask friends and family for money. A payday loan can be helpful when you are out of options and payments must be made.
You need a quick and fast loan
Payday loans are short term and mean you could get your cash as soon as you need it (usually overnight). You can repay your loan on your next payday or for up to 6 weeks. If you have small, urgent expenses, a payday loan could be the perfect option if you do not want to be tied to a long term loan.
You have emergency/ unforeseen expenses
No matter how good we are at budgeting, emergency expenses appear every now and then. Draining your bank account could leave you short on cash for necessities. A payday loan could cover emergency expenses such as:
- Medical/dental bills
- Car repairs
- School fees
- Rental bonds
- Urgent home maintenance
To avoid late/dishonour fees
Struggling to pay bills on time can often leave us in more debt. Late or dishonour fees quickly add up and before you know it you could end up owing a lot more than anticipated. Sometimes it is better to borrow money to avoid these expensive fees; the fees will only keep growing until they are paid!
Do not use payday loans for long term use or luxuries
Never use payday loans for long term finance, only to cover short term, emergency expenses. Payday loans should not be used to pay for luxuries such as the latest IPhone or to fund expensive lifestyles. Borrow only for the time you need and if you can, settle early to save on interest.
It is important to pay off existing debt before taking on more. If you are struggling with multiple debts be sure to prioritise them and pay off high interest loans first. You could also consider a debt consolidation loan to make your debt more manageable with only one payment, less frequently.
Disclaimer: The above information is general in nature and not intended to be financial advice. You should consider seeking professional advice before following any suggestions in this blog/website.