We often see that many people apply for a payday loan for other reasons.
Everyone has a different reason to borrow money from a lender. Whether you need it for an emergency, personal expense or a utility bill, you are borrowing money for a certain purpose. A payday loan is there for the people who need a certain amount of cash and cannot afford it on their salary. These are meant to help families get by between paychecks.
The top 3 reasons for applying for a payday loan is to pay bills, a car repair or school expenses.
When the economy was great, people were buying nice big houses with nice appliances. They were able to pay the bills without any issues. Now that some families have been laid off, they are struggling to pay those hefty utility bills. The electricity is getting shut off and so is the water. This is where payday loans are most often used for. Lenders can borrow enough money to keep the utilities running between paychecks. Once they get paid, they can start repaying the lender. They don’t have to pay the money back all at once but at least they can put a little dent in their debt. Once they have completely paid the loan back, they are able to take out another loan if they need to. This will let your family stay safe and with utilities.
It can be hard paying the large bills on a lower income, especially when you were used to making a good salary before you were laid off. Please note that a payday loan is not a permanent solution for your problems. But we are here to help you in cases of emergency.
The second reason people apply for a payday loan is car repairs. People get in car accidents on a daily basis. Not everyone will be able to pay for the damage. Some insurance companies will pay for the damage but not all of them. If you were the at fault driver, you will have a harder time trying to get your repair paid for. If you were not the at fault driver, the other driver’s insurance should pay for your repair. When you drive your care daily, it can be hard to have it unusable for a week or two. The payday loans will let your get your car fixed in a hurry so you can get back to your normal schedule. You will be able to pay the repair shop and not have to worry about losing your car.
The third top reason for getting a payday loan is for school expenses. A lot of college students have a hard time paying for their textbooks and tuition. The tuition alone can cost a couple thousand dollars. Then they have to also pay for their books that usually cost a hundred dollars a piece. If they are working a part time job because of school, there is no way they will be able to pay for their college fees. A payday loan will help them pay off the college so they don’t get kicked out of class. It will be difficult to pay the lender back right away. A lot of companies will let the students pay them back with a few payments. As long as they get their money back they are okay with payments.
Most personal loans have a fixed interest rate. That is, monthly payments remain the same. Personal loans are also usually unsecured. time. There is no loan collateral. You may need to use collateral to obtain approval, such as savings accounts or certificates of deposit. You can also ask your friends and family to sign your personal loan together to help you get approved.
Our advise is: only apply for a payday loan when in an urgent situation or emergency. Payday loans are not suitable for solving long term financial problems.