What are the recurrent uses of payday loans?
As a majority of the UK continue to save money on travel as a result of the Covid-19 pandemic there are also many people losing their jobs and experiencing great financial difficulty. With this of course comes the difficult decision of whether to borrow from friends or take out a loan. In this article, we will be providing you with some examples of recurrent uses of payday loans.
Financial emergencies
When you are living from paycheck to paycheck, the smallest bit of financial uncertainty can lead to financial emergencies that can see you scrapping together the pennies in order to pay your unexpected costs off as quickly as possible. A payday loan often comes with a quick acceptance time, allowing you to have the funds that you need within your account in just a few hours. This is a huge benefit to those struggling with a financial emergency as it allows it to all be paid for and the cost be spread over the course of the month.
Redundancy
Another common reason why many apply for payday loans is redundancy. With many losing their job at this uncertain time a payday loan may seem like the ideal option to cover unexpected bills. However, with those with poor credit, it may not be this simple. Though there are guarantor payday loans and other loan options available, it is important to consider other options such as borrowing money from friends or family or even asking for an advancement on your redundancy pay in order to cover your bills.
Unexpected bills
In addition to redundancies and financial emergencies, payday loans are commonly used to cover unexpected bills. With many of us struggling to make ends meet during this time of ongoing uncertainty, an unexpected bill could be enough to push you over the edge. This is where a payday loan comes in. This can be applied for online and should you be successful, the money will be in your account within 24 hours. This allows you to pay off the unexpected bill using the loan and pay back this amount to your lender on the next payday with the money coming directly from your bank account.
Unexpected breakdown
If you are a household that relies solely on one car, then an unexpected breakdown could leave you with no means of transportation for work without the means of paying for the repair. If this is the case, a payday loan can be used to provide emergency funding for the repair and get you back on the road as soon as possible. It is important to remember however that your credit score will be checked every time that you apply and to many previous applications may affect your chances of being accepted for the loan you have applied for.
Whether you have applied for a payday loan before or you are just looking at the options you have available to you should you find yourself in a financial emergency, it is important to make sure that you are aware of the uses for this loan before you apply.