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When is a Payday Loan Right?

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When is a payday loan right?

Payday loans have had more than their fair share of being under the spotlight. They’ve been up there in the public eye to be well and truly slammed down – sometimes quite fairly, but other times, maybe not quite so.

Most people who have used them to help them through hard financial times have found their experience painless and have consequently taken them out more than once.

There are times when they can be very helpful providing they are taken out for the right reasons.

A short term loan should only be undertaken in a one-off manner for a temporary financial problem that requires immediate attention. They should not become a lifestyle as that will only cause nightmares. 

If you receive an unexpected bill that you haven’t budgeted for, everything around you can feel like it’s being turned upside down. As with anything in life that is suddenly thrown at us , we need some time to adjust accordingly. If you have a steady income coming in, then you need to step back and assess the extra sum required to pay the bill and work out the maths to make sure a one-off loan is affordable for you in the short term.

If your card is declined  and you need to buy food, kids’ school items or another essential, a payday loan can be a good choice as this predicament would definitely be deemed as necessary. But first it may be advisable to speak to your credit card company and see if there is any help they can give you at a more competitive interest.

Spiralling Christmas and New Year expenses may well take you by surprise. The festive season is supposed to be a time of merriment and cheer, but it can easily become a financial struggle and a very heavy burden that lasts well into the following year. Try not to panic and think clearly. It may be the right time for a payday loan, but the same sensible criteria needs to be applied before undertaking an extra loan repayment.

A forgotten birthday present may be a one off from your usual incomings and outgoings. If you can use a credit card or an overdraft facility without getting involved in excessive fees, then that would be an option to consider. However, if that isn’t available to you, a short term loan may be the correct choice.

When is a payday loan right?1

An urgent home repair that may put a person’s health at risk e.g. damp, a leaking roof or a heating system, is likely to be an emergency, especially in the winter months, and will need to be fixed as soon as possible. Check out all your home insurances first in case you’re already covered. A good home insurance is HomeServe and may be worthwhile looking into. The company covers a lot of home emergencies without any excess and charges a reasonable premium. A payday loan is also an alternative.

If your car or vehicle breaks down and the fault is a danger or is stopping you from getting to work, then it must be repaired urgently. If the transport is needed to ferry young children around, then it also becomes a real problem. Once more, a small loan that you can afford to pay back reasonably quickly may be a good idea.

Nobody likes going to the dentist, but when you have a toothache, the pain can be quite unbearable. It’s a relief to stop the pain, but there can be quite a high price for doing so. This would certainly be considered as an unexpected expense and an emergency, which would automatically fall into the category of being the right time to opt for a payday loan. Likewise, a medical bill for any other ailment is paramount.

Ever run out of money on holiday unexpectedly? It’s not a good place to be if that should happen. Once again, if your options are limited, a short term loan may be a resolution.

Any type of loan needs to be considered carefully before undertaking it – even a mortgage needs to be evaluated beforehand. A payday loan is no different. There are right times and wrong times to take one out. Any type of emergency that you cannot get funded for quickly or reasonably enough and is affordable for you in the short term makes sense, but if it’s something that can wait, or it’s just a luxury item, then think again!

About the author

Peter Davis Peter Davis is a Marketing Analyst at PaydayLoan123 specialising in financial products. Peter writes most of our articles as he stays up to date with the latest information. He enjoys most sports, particularly playing football and watching his favourite football team. Peter really like his food too as we have all witnessed first hand!

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