7 Scenarios Where Payday Loans Can Help You Out

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Payday loans were once seen as a financial trap for those with poor credit. As the product has gained acceptance among the middle class, the negative stigma has begun to fade. Today these short-term loans have become a financial lifeline to more than 12 million Americans every year.

Coming up short when a bill is due or an emergency arises is stressful. Relying on family and friends for a loan is embarrassing. With a payday loan, avoid the awkwardness of having to ask to borrow money.

The process is quick and easy. All you need to do is provide proof of employment and a checking account in good standing. The average loan amount is $500 but in some states, borrowers can get up to $1,500.00.

Expect to pay higher interest rates with a shorter repayment period. Keep reading for seven scenarios when a payday loan can help you out.

1. Payday Loans Work in Emergency Situations

Emergencies can arise at any time. It doesn’t matter if you have the money to cover unexpected expenses or not. You ask yourself, should I get a personal loan?

Chances are if it is a true emergency, you won’t have the time to wait for approval on a typical personal loan. With a payday loan, you avoid the hassle of completing cumbersome paperwork and credit checks. Get approved for the money you need in less than a half-hour.

Ensure you understand the terms and conditions. If you don’t understand what is an unsecured loan or what is a term loan ask someone before taking out one.

2. Avoid Late Charges and NSF Fees

It doesn’t take much to throw a monthly budget out of sync. A higher than normal utility bill or one-off expense can do the trick.

Paying a bill late comes with extra charges. Remembering an expense you forgot to deduct could mean hefty NSF fees.

Today, companies charge anywhere from $25 up to $38 for late fees and banks charge just as much for returning an item when funds aren’t available. Even if you have overdraft protection you still get charged causing your account to go deeper into the negative.

Use a payday loan calculator to determine if you will save money by taking out a loan vs. incurring fees.

3. Take Care of Home Repairs

Backed up plumbing, a malfunctioning AC unit, or a dryer that isn’t drying are all things that can go wrong without notice. If a failure happens between paydays you may not have the money readily available to cover the repair.

Repairmen want to be paid immediately for the services they provide. In some instances, you simply don’t have cash on hand or the available balance on a credit card. The dilemma becomes should you wait to get the repair down or put off paying another expense.

Avoid inconveniences with a payday loan. Get the cash you need to cover home repairs.

4. Buy Concert Tickets

It was just announced that your city is on the tour for your favorite band and tickets go on sale Friday at 10:00 AM. There is no way you can risk a sell-out but your payday is a week away.

With a payday loan, you don’t have to worry. You can get your tickets when they go on sale. It will beat having to pay a scalper some crazy amount down the line.

When you apply for payday loans you are not under an obligation to disclose what the money will be used for. Their only concern is that you repay on time. Whether the money is used for concert tickets, dinner, or a new outfit, it doesn’t matter.

The loans should only be used when you really need it because it has to be repaid on your next payday.

5. Car Repairs

There is nothing like your car breaking down and being told it is going to cost a few hundred dollars to get it repaired. If you’re like a lot of people and unexpected vehicle repair expense can be a major hardship. When it’s your car and you need it for work you have to act fast.

Losing time from work because your car isn’t working can throw you further into debt. Online loan companies like Bonsai Finance will help you get the money you need in a hurry.

You can have the money before the car repair shop calls to tell you your car is ready. If you’re lucky, you may be able to put in some overtime hours to pay off the expense.

6. Last-Minute Dinner Plans with Friends

A call comes in and you are ecstatic to learn that a childhood friend or college buddy is in town for the night. You’ve just paid all of your bills and money is running low. There is no way you can let him leave town without spending time together.

Of course, dinner and drinks will be on you. Don’t let the moment pass. Run over to the payday loan office and get the money you need to show your friend a good time.

7. Enrollment Fees for a Child’s Field Trip

If you are a parent you know the expenses never end. If it isn’t school supplies, little league expenses, or an upcoming field trip, children can break the bank.

A benefit of obtaining a personal loan is when opportunities arise your kids don’t have to get left out. Whether it is enrollment fees, a school activity, or a gift for a classmate’s birthday, the money is within reach.

No need to sweat small expenses that occur between paydays. Borrow the money in a non-invasive discreet manner and repay it a few weeks later.

Reasons are Endless

Regardless of the reason, payday loans are a useful resource when used wisely. We never know what unexpected expense may arise. Having a quick easily accessible option for cash is a relief.

Looking for ways to manage your finances and prepare for unexpected expenses? Check out our free budget planning software.