Payday loans are all in range nowadays. The safe, fast, and easy way of getting money in a snap has proved to be very beneficial. But because loans are technically debt, getting a payday loan shouldn’t be taken lightly. There should be a solid reason why you would get a good payday loan. If you are still hesitant in getting payday loan then below are some of the signs when you should get one.

You are tired of high-interest debt

Traditional lending means high interest debt. If you’re looking for affordable short-term debt, that’s a clear sign that you need a payday loan. Personal loan and credit card debt are very expensive compared to payday loans. The FCA highly regulates the payday loan sector in the UK. There are interest caps that ensure payday loan borrowers never pay more than they have to. Furthermore, with interest rates caped at 0.8% by the FCA and there being many affordable payday loan lenders, there is no reason why you should continue using other high-interest debt.

The important bills are starting to get (or are already) behind

When you’re dealing with unmanageable loans, overwhelming debt, and increasing fees every month, it can feel impossible to keep up with all of your bills. If you’re starting to fall behind on the important bills like rent and electricity, or find yourself paying your payday loan fees before groceries, it’s time for a change.

When you want to boost your credit score

Payday loans are the best types of loans to use to boost your credit score. The loans are readily available, easy to get and manage. Payday loans are also affordable provided you choose a reputable lender. The loans are also available to individuals with bad credit. Unlike other loans, you won’t be overcharged because you have a bad credit score. Taking a payday loan is a great way of boosting your credit score as long as you meet your repayment obligations. Personal loans have a tedious application process. They also tend to be expensive. This makes them less attractive if your sole purpose of taking out a loan is to boost credit.

You’re taking out additional payday loans to cover your other payday loans

You’re already living paycheck to paycheck. Sometimes the only option can feel like taking out more loans to help cover the others. If you’re doing this, you’re going deeper into debt and further away from getting out from under those loans. And the further into payday loan debt you go, the harder it is to get out. Payday loan consolidation can help you end the cycle.

You have emergency expenses to settle

Payday loans are the best sources of short-term cash for catering for emergency cash needs. Emergency expenses range from unexpected bills to an expensive car repair. Payday loans can also come in handy when you have emergency home repairs i.e. a damaged roof after a storm. When faced by a crisis, there are very few places you can turn to for quick cash. Payday loans are the most favourable sources of emergency cash because they are readily available. You can get a payday loan instantly (a few minutes after your application is approved). It takes longer to borrow personal loans or obtain a credit card or even borrow from friends. If you have an emergency expense that can’t wait, this is a sure sign that you need a payday loan.

You have multiple payday loans

The average payday loan borrower takes out 8 loans a year. Payday loans are designed to keep you coming back for more. With the full payment due only two weeks later, it can feel next to impossible to pay off. So, you keep paying the fees and rolling over your loan and barely getting by. Until you’re short on rent again and you have to take out another. It’s a vicious cycle, and it can feel like a trap.

Published by Kristin Perry