When it comes to Payday Loans, no two applications are the same. There are literally hundreds of different reasons as to why people decide to take out a payday loan or a short-term loan, but there are definitely some situations that are more common than others. A payday loan is a fantastic option for those who need to get their hands on money fast and who do not want to spend weeks or even months waiting on that bank to approve a short-term loan. So, what are the most common reasons for taking out a payday loan? Sure Money UK is going to look a little closer at the most popular.
An unexpected bill
It has happened to us all at some point in time or another, you have managed to budget perfectly for the month and an unexpected bill lands on the doormat. Be it a council tax bill, a car insurance bill, a broadband or mobile phone bill or simply something you forgot about, they can all take us by surprise when we least expect it. An unexpected bill is one of the most popular reasons as to why people seek out a payday loan and it can help them make their payment without placing any added strain on their finances for the rest of the month.
Maintain or repair a vehicle
When your car decides to play up it can interfere with your ability to be able to get to and from work or study. If you can't get to work, you can't earn your wages. Car repairs are notorious for being expensive and can take the most prepared driver by surprise. If your car happens to stop working on you, there is not much else you can do other than take it to a garage to be repaired. This can range from several pounds to hundreds and can clear out your savings account in the blink of an eye. A short-term loan can help you cover the cost and then be repaid over a period of 1 to 6 months, allowing you to spread the amount and avoid being out of pocket.
Pay for an overdue credit card bill
Credit cards can either be your best friend or your worst enemy and if your payment date does not fall on or around the same date that you receive your wages, it can be difficult to remember to budget for it. Unfortunately, if you don't pay your credit card bill on time, you will most likely accrue late payment charges and fees. Over time, these can quickly add up and you may find yourself struggling to keep up with your monthly payments. A short-term loan can help you pay for the overdue credit card bill, therefore avoiding any additional charges. When it comes to paying off a credit card, a payday loan can help you drastically reduce the amount that you pay each month.
Medical and vet care
The health of our loved ones and our pets are one of the few situations where we will move heaven and earth to make sure that they are safe and well. Sometimes, receiving the best care costs a lot of money and having access to sufficient funds can be difficult. A short-term payday loan can help by covering some of the costs involved and lift a weight off of your shoulders. Of course, the NHS is free, but not all medical treatments require hospitalisation. It could be something as simple as needing to get a new set of prescription glasses, having a filling replaced, or taking your pet for its regular annual checkup. When situations such as these arise, many people turn to payday loans to cover the costs until their next payday.
Purchase groceries and everyday necessities
While you may have had the best intentions to budget yourself and spend wisely, it is very easy to find yourself short halfway through the month. This can lead to difficulties in purchasing your everyday groceries and necessities. If you find yourself in this kind of situation, a payday loan can tide you over until your next payday. There is nothing more distressing than looking in the cupboards and fridge and seeing them bare. As the majority of payday loans payout on the same day, going hungry does not have to be an option.