Millions of UK residents have been turning to payday loans for their financial problems and emergency. Because this type of credit offers instant approval of the loan and release of funds, it has become a trusted ally whenever someone needs cash immediately. Unlike other types of lending companies that have several stringent requirements, payday loan lending companies accept all types of borrowers as long as they have a regular income from employment or government benefits. Even those with bad credit can apply for this loan.
Here are the most common situations that prompt UK residents to take a payday loan:
Unexpected Need to Travel
Nowadays, most people look for jobs in other cities or states where there are better opportunities for personal, financial, and career growth. But, what would happen if you receive a message that you must come for a job interview, but you have no money to pay for the airfare. In this case, you might lose the chance of having a good job because you are short of funds. Getting a payday loan would resolve your urgent because you could have a few hours after applying. You can submit your application and get the funds several minutes to an hour after approval, buy the plane ticket that would change your life, have the interview, and land your dream job.
Dental or Medical Emergency
Dental or medical problems are another situation where taking a payday loan is the best solution, especially to people who are not yet members of the United Kingdom National Health Service or NHS. Dental work, hospitalisation, or medication can cost you a lot; nevertheless, you cannot wait for several days to deal with these issues. What if you cannot afford these health services? You can get a payday loan and visit a dentist or a doctor immediately. Health problems can worsen when you leave them unattended. With the help of a payday loan, you could maintain good health.
One situation where getting a payday loan would be more advantageous to you is when you have withdrawn more cash than what you have from your bank account. In the UK, banks allow account holders to spend more than what they have in the bank account for a fee, which can be very expensive. For example, if you have overdrawn from a checking account, the overdraft fee could be as high as £35, and if you fail to cover the overdraft, bans can charge daily penalty. You can imagine how high the fee would be if your deficit stays for several weeks to a month. How can you avoid paying the staggering overdraft fees? Taking a payday loan to pay for the shortfall in your account will bring more savings even if you have to pay the interest.
For example, if you have an overdraft of £200, the bank would charge £35, plus £5 every day. In one week, the penalty could amount to around £70. But, if you take a payday loan of £200 to pay your overdraft, your payment for a one-month loan is only £220. In this situation, taking a payday loan is far better than waiting until you have the money to pay the overdraft and penalty.
Other Emergency Situations
What if your only means of transportation is your car and it suddenly breaks down? You find out that the problem is severe and would require a significant amount of money to fix. You can apply for a loan to purchase the needed parts and pay a mechanic so that you can drive to work the next day.
In situations where you need funds immediately, you can take a payday loan and resolve your money problems.