Three Common Payday Loan Situations You Could Find Yourself In

Did you know that South African employees made an average of R13,964 in September 2017? This means you may have taken home about R167,568 in a year.

Now, consider that nearly a third of your income goes towards utilities. These include housing, electricity, water, and other services, such as gas. But your expenses don’t end there – you also have food, beverages, clothing, transportation, and recreation to think about!

So, your income may be enough to cover these basics. But what if an emergency comes up? Most likely, you’ll find yourself in one of the common payday loan situations.

Especially if you don’t have savings put away.

The good news is, used the right way, a payday loan can help you get out of a financial pinch. But what exactly are the best uses for payday loans?

We’ll show you in this post, so make sure you keep reading!

1. Medical Emergencies

Were you aware that a medical scan in South Africa averages at R3,800? Or that an MRI scan will set you back R8,800? Those are already expensive, but they don’t compare to the R304,000 charged to patients who need a heart bypass!

Of course, we hope no one in your family will have to undergo these medical emergencies. It doesn’t eliminate the fact that the country’s medical costs are some of the world’s most expensive though.

This is where payday loan benefits you. With the right lender, you can have access to financial assistance for such a circumstance.

2. Rent Payment

A one-bedroom apartment in SA costs about R5,650 to rent a month. That’s more than 50% cheaper than what they pay in the U.S., but for average consumers, that’s still a lot of money.

What’s more, failure to pay on time can lead to surcharges and a drop in your credit score. That means even more costs and the potential to suffer from the effects of a bad credit score!

In this case, seeking payday loan help may be a wise choice. While this means you’d have to pay for interest too, it’s a better option than experiencing the longer-term impact of poor credit.

3. Emergency House Repairs

South Africa isn’t a stranger to extreme weather. The thing is, heavy rains, storms, and floods can cause structural damage to your home. A leaking roof, for instance, is a common result of such bad weather.

While the leaks may be minor, delaying needed repairs will cost you a lot more in the long run. Even the tiniest leaks will grow bigger over time, making them costlier to repair. There’s also the risk of mold growth and spread, which can lead to various health conditions.

So, don’t wait for repair costs to rise or put your and your family’s health at risk. Apply for a payday loan now before things turn for the worse!

When You Find Yourself in Any of these Payday Loan Situations

Before you apply for any loan, payday loans included, it’s advisable to look into all your options first. That way, you can figure out if your specific circumstance falls under payday loan situations, or if you can benefit more from another type of short-term loan.

Want more advice to improve your finances? Then make sure you check our blog out! More wise spending tips and tricks await you there.