A payday loan is an unsecured loan that aims to provide borrowers with a quick influx of cash until they reach their next payday. They are intended to be a short term loan to help ease financial tensions for the borrower until they receive their next paycheck. Payday loans usually tend to have quite high interest rates so it’s recommended to only borrow money this way for the least amount of time possible.
There are many reasons why customers may want to get a payday loan as they can be used for a variety of purposes. This article presents Dollar Hand’s top 10 uses for payday loans.
Top 10 Reasons You May Want A Payday Loan
1. Borrowing Money To Pay For Medical Bills
America’s healthcare is extremely costly, with the average US citizen spending around $300,000 on medical expenditure over their lifetime. Unfortunately, health can sometimes be unpredictable and people may find themselves facing unexpected medical treatment. It is therefore not uncommon that patients may wish to take out a payday loan to help pay for emergency medical costs.
2. Need Money To Help Pay For Dental Fees
There is nothing worse than tooth pain and so a payday loan may help those in need of dental work to alleviate any discomfort. Dental procedures vary in price and can even amount to well over $6000 depending on the nature of the problem, so it is not surprising that this is a popular use for payday loans. If a customer’s funds are tied up in other expenses and they do not want to wait until they receive their next wage, then borrowing money will enable them to get their teeth sorted quickly.
3. Looking To Borrow Cash To Pay For Pet Costs
Pets such as dogs and cats are an important part of the family. It’s therefore essential to make sure they are taken care of. So in situations where pet owners may need to take their beloved animal to the vet, a payday loan can help make sure they get all the treatment they need, especially if their owner is running slightly low on funds that month and does not want to wait until their next payday to get their pet seen to.
4. To Help Pay For Home Fixes
Whether you are a homeowner or a renter, it is inevitable from time to time that you will need to pay for a house repair. Whether you are dealing with a broken boiler or a leaking roof, fixes are essential to make sure your home is running smoothly.
Residents running tight on money may wish to take out a payday loan to get the problem fixed instantly. Payday loans could also be used for home renovations such as redecorating a room or double glazing windows.
5. To Fund Emergency Car Repairs
With over 90% of the US population owning a car in 2022, many of these drivers face their vehicle breaking down. Those needing to get their car fixed quickly to get their kids to school or to commute to work can consider borrowing a payday loan to get fast cash to pay for repairs. The driver may not need to take out a loan for the whole bill so even if it costs $1000 to repair, the customer could borrow $600 or $700 depending on their financial situation.
6. To Purchase An Engagement Ring
Those looking to tie the knot may want to purchase a particularly special engagement ring as a sign of their commitment and love. In this case, a payday loan can provide a quick and easy way to get the money to do so. As long as the borrower is certain they will be able to comfortably meet repayments, then a payday loan can help them secure the funds that they need to have the perfect proposal.
7. Need Money To Pay For Wedding Costs
Since unsecured loans can be used for any personal reason, it is increasingly common amongst Americans to use payday loans to help pay for big life events such as weddings. For example, the bride and groom may need to secure both their caterer and band but might only have enough money that month to pay for one of them. In this case they may wish to opt for a payday loan to help ensure that they have the wedding of their dreams as they can then pay back the loan once they receive their paycheck the next month.
Alternatively, the couple may wish to borrow a payday loan when booking their honeymoon. Since they will be spending a lot of money during this exciting time, a payday loan can help give them an extra cash top up to make sure they start their next chapter in the best way possible.
8. Expecting Parents Who Need To Borrow Fast Cash
Expecting parents may wish to get organized before the birth of their baby and purchase vital items such as a cot, pram or car seat. In this case, a payday loan can be useful to help the parents get prepared in time for their exciting new arrival.
9. Borrowing Money To Pay For Funeral Costs
Using a loan to pay for funeral costs is a common reason for needing to borrow money in the USA. Those wanting to make sure a loved one is sent off properly may use this method to get quick access to cash. Since it’s very simple and convenient to organize a payday loan, extra funds to pay for vital components such as the death certificate, flowers or travel arrangements can help to alleviate stress during a very difficult time.
10. Entrepreneurs Who Are Looking To Start A Business
Another popular reason for taking out a payday loan is if an entrepreneur is setting up a business. As long as the owner is confident that they will be able to pay back the loan, an injection of cash can help get the business off the ground. For instance, it can be used for buying stock, advertisements or for set up costs.
Where Can You Apply For A Payday Loan?
You can apply for a payday loan from a payday loans store, an online direct lender, a loan broker or from a loans comparison site. Online lenders have become an increasingly popular choice for US citizens to borrow money from as they offer quick money that can be accessed securely on an electronic device from the comfort of your home or whilst you are out and about.
It is important however to check that payday loans are legal in your state as whilst you can get a payday loan in places such as California and Ohio, they are illegal in states such as Maryland and New Jersey. It is also worth considering alternatives to a payday loan before applying for one, with examples including borrowing from family and friends or using an authorized overdraft.
Justine is a full-time writer with lots of expertise and a wealth of experience in the financial world. In particular, she specializes in household income and consumer finance across the United States. Follow her articles for useful advice and top tips, guides on how to save money and lots more.