Payday loans are types of loans in which you can borrow an amount up to $1000 or $1500 for a short time period. These are short term loans and are usually taken by people when they have to pay important bills on short notice and have already run out of their salary. The idea of the loans is to lend money to the people who can return it as soon as they have received their next paycheck. The process for payday loans is very quick. A lot of lenders let you apply for a loan online which you can get approved in minutes. One can easily get a payday loan within a day or two and can pay off whatever emergency bills they have to pay. Let’s have a look at a few instances in which you should consider getting a payday loan.
When You Have Bad Credit
Most of the people go for a bank loan or bank credit when they need financial assistance. But you cannot get a loan from a bank if you have bad credit. People who are managing month to month or have dealt with a financial emergency in recent past will not be able to get such loans because of their bad credit. And that is where payday loans become handy. You can get a payday loan with bad credit as well. You will have to show proof of employment though, so the lender can make sure that you will be able to pay it back. In Canada, you can easily get a payday loan with bad credit on Friendly Lender. But make sure you improve your credit rating for long term purposes. Payday loans can help you get out of a tricky situation once or twice but making it a habit will only make things difficult for you.
To Pay Utility Bills
If the bills are piling up on your desk and there is still time left before you get your next paycheck, then you should go for payday loans. Most of the people opt for payday loans for this specific reason. If you are in such a situation, you should get a payday loan, but you need to make sure that you do not make a habit of it. Instead of relying on payday loans at the end of the month, you can consider managing your finances better. Make efforts to reduce the energy consumption in your house. You should use LED lights instead of fluorescent bulbs. To keep the house warm, you should use curtains in your house as well as it will reduce your gas consumption. And while using water, make sure that you are not leaving any taps open or are running the shower for way too long.
For Debt Consolidation
It may sound a bit surprising, but you can get a payday loan to pay another debt as well. People use payday loans to pay debts from other companies and loans. You can also use it to pay for your credit card as well. Sometimes it makes sense to get a payday loan if the interest on the loan is not much. But if the interest is too much, you should consider other options first. There are several ways to deal with such sort of situation. Try asking a family member or a friend for help. That way you will be able to pay the debt without paying any further charges.
A Medical Emergency
Emergencies come unannounced, and if you find yourself in a medical emergency at a time when you cannot afford it, you can apply for a payday loan. If you have proper medical insurance, then you will be able to get your treatment. But if that is not the case, you will be left with no choice but to get a payday loan. The cost of medical bills ranges from $200 to $300 depending on the emergency. And unlike other bills, you cannot pay medical bills in installments in most cases. You will have to pay for it upfront. So, it is advised that if you can afford health insurance, you must get one. Otherwise, you can always rely on payday loans for this one.
For Holiday Celebration
Sometimes you might not need the payday loans for an emergency, but to have a great time with your friends or family. A lot of people turn to payday loan lenders during Christmas so that they can have the money they need to enjoy the holiday to the fullest. Sometimes it can become hard for parents to afford gifts and celebrations for their children and payday loans can help with that. It would be like getting your next month’s paycheck in advance. The only difference is you would have to pay some interest on it.
To Avoid Embarrassment
While some people prefer the payday loans, others think that instead of going for payday loans, one can borrow such sort of amount from their friends or family. In that case, they would not even have to pay any interest. While this may be true for some cases, some people will feel embarrassed if they have to go to a family member or a friend for help. Some will also feel scared because there is always a possibility that you might not be able to pay it back. This is why it is safer to go for a payday loan because then you will owe money to a moneylender not someone you know personally.