There are times when you could do with a bit of extra money to feel more secure about your finances, and there are days when you really need money, and fast! But how can you tell which scenario is worth getting a payday loan? Use this guide to help you determine whether you can wait, or if you need payday loans immediately.
When Making An Investment
The great thing about payday loans is that they’re considered as a short-term personal loan. You don’t need to use them for anything specific like a mortgage or vehicle financing – you can use the funding you get from a payday loan for anything you need. That includes when you’re investing in a business idea or start-up that you believe in.
If you’re presented with a small investment opportunity that you can’t pass up, you’ll need to put money down. And unfortunately, most start-ups have a limit for how little you can invest, which means that if you don’t have enough to invest the minimum, you’ll need some help.
You can apply for a payday loan, repayable when you get your next paycheck. If you spent a little frivolously previously, and would otherwise be able to afford the investment, a payday loan is your best bet. You can invest money into the new venture, and afford to repay the loan when your income comes in. It’s a win-win.
Repaying Student Loans
Paying for an education is daunting because the cost can be quite high. However, tertiary education is an investment in your future. With university qualifications, you have the opportunity to apply for fulfilling employment that pays more, with better benefits as well. However, student loan repayments can become overwhelming.
However, the more you pay initially, the less your repayments will be as you pay off the debt. Therefore, taking out a payday loan to make the repayments more manageable in the future is a popular decision for many students.
To Pay For Expensive Deposits
Do you have a special occasion coming up, like a wedding or anniversary party? They can be great fun, but require a lot of planning and even more money. Unfortunately, most vendors want to protect their investments, which is why they request deposits up-front, ahead of time. However, you might not be able to afford the deposits for every service provider you hire at once.
Although typically you’re only asked to cover their costs in the deposit, and it secures your order from them – whether it’s catering or entertainment – it can get expensive. You could use your credit card to pay for these deposits, but if you’re hiring a venue as well, you might want to save your credit card for those much more expensive costs.
If you’re hesitant to use your credit card, you can apply for a payday loan. The financing is approved quickly, so you and your vendor won’t have to wait, and it’ll make the second instalment that you pay them much more manageable. And if you stick to how much you get from your payday loan, it’ll help you to keep to your budget.
Paying Off A Bad Debt
Bad debt can take years to repay, and not all banks and other lenders are as forgiving as payday lenders. If you come up short and need a desperate injection of cash, you can get a payday loan instead. They’re short-term, and you can only get small amounts, which means you aren’t getting into severe debt to repay another debt.
As long as you are secure in the fact that you can repay your payday loans when you get your next salary, a payday loan can save you from the brink of defaulting on a payment of something you desperately need to retain, like your home or vehicle. They can also keep you from getting a bad credit record, especially if you’ve been struggling to pay off a bad debt.
Instead of viewing credit as a burden on your finances, getting payday loans in NZ can change your financial situation. Because they’re small amounts, you should be able to repay them quickly so that they won’t get you onto a path of money troubles. As long as you change your mindset about getting a payday loan, you’ll be able to repay bad debts, deposits, or invest in a start-up that you believe in. Remember, short-term debt is nothing to be afraid of if it means you’re using it to invest in your future – whether it’s in your education or a party!