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10 Reasons People Take Out Payday Loans

Payday loans are used by a wide variety of people in a multitude of situations. From unexpected financial difficulties to situations where a quick injection of cash is needed to see them through till next payday, they are a popular and useful way of borrowing money. We take a look at 10 reasons people take out payday loans.

Redundancy

In today’s economic climate, there are very few ‘jobs for life’ and redundancy is something that more people across the UK are experiencing. Whilst some people who have been working for a company for a number of years may end up with a sizeable payoff that enables them to pay off debt and plan for the future, those people working for a company for under two years are not entitled to statutory redundancy pay. This can leave them facing a sudden financial shock and some people turn to payday loans to ease their finances whilst they find a new job.

Avoid The Embarrassment Of Borrowing Off Family Or Friends

Most of us suffer the occasional financial emergency and if we don’t have the funds available to cope with it there are several options available. Banks’ lending criteria are strict and that leaves people turning to friends and family. But many people don’t like to do this as it can be embarrassing and put a strain on relationships. Therefore a short-term payday loan can be an attractive alternative.

Christmas And Birthdays

We all want to give our children the best Christmas and birthday that we can but sometimes they fall at awkward times financially and people find themselves without a lump sum of cash to buy presents. Compared to some high street shop finance options, short-term payday loans can often be a cost-effective way of funding Christmas or a birthday.

Job Interview

Impressing at a job interview is crucial if you are looking to further your career. As well as impressing them with you skills, qualifications and experience, it’s important that you look good too. Using a payday loan to finance the purchase of a business suit can be a good way of ensuring you look smart and if you get the job, a very smart investment!

Urgent Repairs

Whether it be roof tiles that need urgently replacing or if your car that you use for work needs vital work for its MOT, not everyone always has a lump sum of money put away to cope with such an occurrence. Payday loans offer a simple, quick and easy way of borrowing an amount of money that can be repaid back in a short period of time and help with urgent repairs.

Poor Credit

Whatever the reason for trying to get credit, payday loans are often applied for because people have a poor credit score and they do not have access to traditional sources of finances such as credit cards and bank loans. Payday lenders have different lending criteria and this usually makes it much easier for people with bad credit to get accepted for a loan.

Paying Bills

Whether it’s utility bills like gas and electric or a vital service such as a mobile phone which you may use for work or keeping in touch with your children,many people find themselves unable to pay a bill until next payday. Banks won’t lend such a small amount and many people may be unable to or be too embarrassed to ask friends and family.

Paying The Mortgage/Rent

For whatever reason, sometimes people get behind with their rent or mortgage. Landlords or mortgage lenders may take action if this is a regular occurrence. In some situations, people find that taking out a payday loan is preferable than missing another month’s payment

Medical/Dental Treatment

Thankfully in the UK we have the NHS which provides free at the point of use healthcare. However, this doesn’t cover everything and if you want particular types of dental treatment, this can end up being quite expensive. Many people turn to payday loans to help them pay for their dental treatment or other medical expenses that are not covered by the National Health Service.

Unexpected Debt

However financially savvy a person may be, there can be times that they may find themselves in debt unexpectedly. One common occurrence is the death of a partner that may leave the remaining partner with a debt that they knew nothing about. There’s not always a simple solution to such situations and many people turn to payday loans in this instance.

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  • July 2017
  • Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk. Representative example: £400 borrowed for 30 days. Total amount repayable is £459.36.
    Interest charged is £59.36, interest rate 180.5% (variable). Representative 728.9% APR. EaglePaydayLoans.Co.uk is a registered trading name of Hellcat Media Limited
    which is an Introducer Appointed Representative of Quint Group Limited, who are a credit broker not a lender.