Money Mart: Payday loans for life’s emergencies

When it comes to dealing with an emergency, many people do not have enough money saved up to cover unexpected costs. When something urgent suddenly arises, people might be left struggling to make ends meet.

Payday loans are short-term, high-interest loans designed to help borrowers quickly access the cash they need. The loans are typically for smaller amounts – between $120 and $1,500 – with the repayment due in full on the borrower’s next payday. Essentially, the payday loan gives immediate financial relief for unexpected expenses that may cause stress.

To be eligible, borrowers must be at least 18 years old, have a bank account, and be able to prove they have employment or a steady source of income.

Here are some of the emergencies a payday loan can help with:

Car repairs

People dependent on their vehicles know how important it is to repair their automobiles as quickly as possible when they break down. Mechanics require payment before the car is driven away, so getting a repair and paying for it later isn’t an option. In some cases, not getting the work done now, especially with issues regarding spark plugs or brakes, can create more expensive problems in the future.

People who rely on their cars to earn an income can’t afford to lose days without their vehicle. Every day the car isn’t running is a day they can’t earn money.

From tire repairs to ignition problems to electrical system issues, a payday loan can ensure the car gets back on the road, and the car owner can continue with their daily activities.

Home repairs and maintenance

Homes are filled with systems that need to be repaired and maintained. Appliances break down, plumbing systems leak and furnaces need maintenance. These all cost money, and emergencies often happen with no warning and no time to do anything but react.

Typically, costs must be paid when the work is done, and simply ignoring the problem often only causes more damage – and higher expenses – in the long run.

Not everyone has money set aside for unexpected home repairs, which is where a payday loan gives borrowers peace of mind. The money is accessible almost immediately, so borrowers don’t have to choose between buying groceries or paying for an urgent home repair.

Travel expenses

Those who live in a different city from their loved ones may one day have to get home in a hurry. Unfortunately, travel is expensive, especially last-minute travel. Air fares are constantly increasing, as are the costs of hotel rooms. There may not be time to save up money to get on a plane, especially when dealing with urgent situations.

A payday loan helps with unexpected travel expenses, so travel costs won’t be an issue whether there’s a family emergency, a funeral or memorial, or another event that must be attended.

Additionally, cancelled flights, extra nights in a hotel, or costs associated with travel delays or disruptions all make travel incredibly stressful. A payday loan means travellers won’t be left with no options.

The bottom line

Because payday loans come with higher interest rates, borrowers need to consider how urgent the situation is and shop around to find the best payday loan for their needs. That said, a payday loan can help people breathe easier when they’re faced with unexpected urgent expenses.