If you need to borrow money online instantly or you need a quick cash advance to help you pay off unexpected bills and expenses like medical bills or mortgage payments, then an online payday loan may be considered as an option to get the fast cash you need to avoid falling into a spiral of debt. With some online loan providers, the money you need, in the form of an unsecured short term loan like a payday or cash advance loan, could be in your account within 1 working day, or in some cases, just hours after your application is accepted.
We all have bills that we need to pay on a monthly basis and sometimes these bills can become overwhelming and can stack up, which becomes very stressful. Struggling to pay utility bills, rent or even veterinary bills for the month is something that many people might struggle with and a payday loan could be the solution to keep you going until your next payday when you can pay off your loan in full.
Sometimes life does not go to plan and you have a cashflow shortfall, you will need to prioritize bills in emergency situations; those that need to be paid first and fastest. The question many people ask is: can you use a payday loan to pay bills and household expenses?
This guide takes you through what might happen if you do not pay your bills and if a payday loan can be used to help you through a tough financial situation.
What Can Go Wrong If I Don’t Pay My Bills?
No matter the type of bill, whether it is a utility bill, rent payment or tax bill, things can go wrong if you do not pay or are not able to pay for your bills. For example your utility bills may include your gas, electricity and water payments. If you fail to pay for these bills then you may be cut off from your water, electricity and gas supply, leading to additional reconnection fees and charges as well as stress and anxiety for you and your family.
You could end up in serious arrears with much deeper consequences if you do not pay your utility bills on time; it is not wise to ignore these bills if you realise you are not able to pay and acting on it will help you survive through the harsh winter or the hot summer.
If you cannot pay your rent then losing your place to sleep and live is a real possibility; not paying rent can be a real worry and a landlord can take you to court if you continue to fail paying for your rent. Make sure that if you are aware that you might struggle to pay any of your bills this month that you act on it because otherwise you may find yourself in more trouble then you were in originally.
Can I Get a Payday Loan to Pay My Bills?
If a bill comes through your door at the wrong time of the month when you are struggling and have little cash left over; perhaps because you have just spent your money elsewhere on an emergency like a car repair, before your next payday, then you might consider looking into getting a payday loan or other form of short term loan online to help you pay your bills, even if you just need to borrow $500 or $600.
Payday lenders can help you out if you need an advance on your wages to pay off a bill and help you relax a bit more at night. You can spread the cost of your payday loan over a number of months with interest, allowing you to pay off your debts on your terms and pay your bills on time, without falling into further arrears and further debt.
If you know that you can repay your payday loan at the agreed time and you just need the money for a bill to tide you over until your next payday then a payday loan could be a good option to pay your bills. Remember though, that lenders will always carry out some credit checks and it is important o understand whether they will leave a hard or soft credit footprint.
What if I Frequently Struggle to Pay My Bills?
If you frequently struggle to pay your bills, then it is not wise to take out a payday loan in order to try and help you pay off those bills. You do not want to be taking out many loans all of the time as your credit score may be affected and you could be charged very high interest rates just to take out a loan, particularly if you have been refused in the past and if you have bad credit.
Instead it may be worth looking at debt management to see if you can control your spending and bills to make sure that you can become financially stable again in the future. Maybe look at renting a smaller place or using less gas and electricity during the week.
What If I Can’t Repay My Payday Loan?
Before you apply for a payday loan, or any loan, you should always consider whether you would be able to pay your payday loan back on time before you decide to apply and take one out. Not being able to repay a payday loan or any loan or form of credit is a serious problem and can cause consequences such as being taken to court and failing to repay your loan on time could even lead to your credit score being damaged badly and further rejection by future lenders.
If you find yourself in a position where you cannot repay your payday loan you should tell your lender immediately and find the best way to resolve the issue, your lender can help restructure the payment plan to help you achieve some sort of financial stability.