There are a whole host of reasons as to why certain individuals may be forced into using a payday loan. In some circumstances, they can actually be highly attractive propositions that serve a specific need. Some of the most common reasons why people use them include:
If after reading all of these reasons you think that you could benefit by using a payday loan, then why not apply for one now with Net Pay Advance.
A form of debt consolidation
Using payday loans as a means for cancelling out other debt is a common reason for their use. For instance, it may be used to pay off another loan that is owed to another finance company or retailer. It can be beneficial to do this where the interest rate is lower than that of the other debt that the person has.
To pay for a medical emergency
For those people in the United States who are unable to afford health insurance, any sort of medical emergency that they experience can come at a huge expense. Depending on the severity of the emergency, it can end up costing anywhere between a couple of hundred dollars through to tens of thousands of dollars. By not paying the medical bill right away, the interest on it builds up over time.
Cover the costs of redundancy
Being made redundant and so being out of work is not only highly financially stressful but also equally emotionally stressful. It may leave you searching around for money just to make ends meet and put food on the table for your family. In this situation, a payday loan can help you to get on your feet and pay any impending bills.
To avoid embarrassment
Once in a situation of financial insecurity, some people either do not have or feel uncomfortable asking friends / family to loan them the money, and instead would prefer to turn to a professional lender instead in order to save them the embarrassment. Although a loan from a friend or family member may not come with any interest, it can cause issues if you have difficulty paying them it all back by a specified deadline.
To improve bad credit
Those people who have a poor credit rating will struggle to get finance from any where else, such as a bank or a credit card. However, a payday loan company will lend to any individual, regardless of what their personal credit history is like. Having a loan that you can afford to pay back is a good way of building your credit score back up, as paying it all off on time will show that you can be trusted to pay the money back.
For mortgage payments
If for any instance an individual falls behind on their mortgage payments, a payday loan can act as a good way of funding these payments with our allerting the mortgage lender of any financial difficulties that you may be having at the time. This keeps them happy to keep lending to you.