Getting cash urgently
Short term credit is generally intended for emergency situations, when you need an advance on money that you will be able to repay in the near future. The interest on short term and payday loans is high, so it is not advisable to incur these costs as a result of luxury spending or things you don’t really need, particularly if your financial situation is tight. Payday loans are also a way to borrow if you can’t get approved for alternative credit options such as a credit card.
You can read more about Bad Credit Loans here.
Taking out a payday loan can make sense to pay essential living costs and priority bills such as:
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car repairs |
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rent or mortgage |
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vet’s bills |
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council tax |
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travel costs |
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utility bills |
since failing to pay these on time may have negative repercussions for you practically and financially.
Click here for more information about our Same Day Loans.
Covering holiday costs
Of course, some people may choose to take out a payday loan to cover expenditure that is not so necessary, such as a holiday. However, if that is the case, you should be totally sure that the additional cost of your loan repayment is not going to put you into financial difficulty. Payday lenders don’t always ask what you want the money for, but you will have to confirm that you understand the cost of the credit that you are using and that you are able to afford the repayments.
More information about our lending criteria is available here.
Stick to a holiday budget
Whether you borrow short term credit or not, planning ahead and budgeting for your holiday is a smart idea for any traveller. Holidays in particular can be one of those situations where costs quickly add up and you may be tempted to spend more than you can realistically afford, not really considering the consequences of your spending until you return home.
Make sure you consider all of the associated costs of your holiday before booking non-refundable flights or accommodation. Ensure that the total cost of the holiday is affordable to you so that you don’t find yourself in trouble financially when it’s already too late!
Extra holiday costs can include:
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Transfers to and from the airport |
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Expensive meals or drinks out |
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Travel insurance |
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New swimwear/sunglasses/sandals etc |
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Entry to tourist attractions |
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Kennel/cattery costs while you are away |
You’ll need to take the full cost of your holiday and possible unexpected expenses into consideration to decide whether short term credit would be helpful and affordable for you.
The pros and cons
Remember that payday loans are intended to be repaid on your next payday, so if your holiday is still months away, you will probably have to repay your loan before you go away. Alternatively, you may be able to take out a short term multi-month loan, where your repayments are spread out over your next three paydays for example, so then you may repay some before your holiday, and some once you are back home.
You can follow this link to learn more about our Instalment Loans.
Either way, if you just need to just grab the best flights or secure a hotel room before your wages actually come in at the end of the month, then a payday loan could help you out.
But it is unwise to use a short term loan to finance a holiday that you may feel that you desperately need, but cannot realistically afford, and then find you cannot repay the loan when it is due.
If you take out a loan, and then realise the cost of your holiday means you cannot make your agreed repayment, you could end up with late fees added to the balance you owe, and of course missed payments and negative information on your credit file if you struggle to repay the loan over a longer period of time.
For that reason, if you do take out a payday loan to cover some of the costs of a holiday, always keep your loan repayments as the priority, rather than getting that inflatable unicorn for the pool or one too many cocktails in the hotel bar, then realising you will not have enough to repay your loan on time.
Take a look at our budget holiday suggestions here, with handy tips to get the best value for money on your travels.
Follow this link to make an application for a cashasap.co.uk payday loan today.
