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Can I Use Payday Loans To Pay Utility Bills?


If you need to pay utility bills and you find that you don’t have enough money to do so, it can be very stressful. 

We all have utility bills that we need to pay on a weekly or monthly basis and sometimes these bills can become overwhelming and stack up. When a few financial emergencies happen, it can mean that you are not left with enough money to pay your bills and you may need to borrow money instantly so that you can keep the lights on or the electricity flowing. 

Particularly in recent times with the increases in the cost of living as well as the rising prices of utilities such as gas, water and electricity, it is relatively easy for things to get a little out of hand and for your money not to stretch as far from one month to the next. Managing payments for electricity, gas and even internet can be difficult and a struggle for many. 

Luckily, there are ways you can better manage your utility bills or find additional financial support if you’re struggling to keep payments going. For instance, a payday loan is a viable option to pay towards urgent utility bills.

A payday loan can enable you to pay your bills whilst waiting until your next payday when you have the money to pay your loan back in full. 

This guide takes you through what might happen if you do not pay your utility bills and if a payday loan can be used to help you get through this tough financial situation.

What Happens If I Don’t Pay My Utility Bills?

No matter the type of bill whether it is your gas, electricity, water, internet bill or otherwise, things can go wrong if you do not pay or are not able to pay for your bills. 

If you fail to pay for your utility 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. 

A serious problem that can occur is that for a relatively small bill that you can’t repay, you end up accruing more and more additional costs, adding to your burden of debt, putting you in a spiral of debt that can be hard to get out of.

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.

Make sure that if you are aware that you might struggle to pay any of your bills in one month, that you act on it because otherwise you may find yourself in more trouble than you were originally in.

Can I Get a Payday Loan to Pay My Utility 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, then you might consider looking into getting a payday loan to help you pay your utility bills. It may be the case that you just need a 600 dollar loan, for example, to pay for some excess electricity usage.

In many cases, it is simply the case that some of the outstanding bill can be paid with the bill payer’s monthly salary, but it just doesn’t go far enough in a specific month. It may be that during a particularly cold winter, you have used more electricity for the heating and so it costs a little more.

In these cases, it may be that one or more of your utilities was used a little more than usual and more than you typically budget for, costing more. With a few potentially larger utility bills, you may need a $500 loan or perhaps a $1000 loan to cover the costs, consolidate a few utility bills and then repay everything on your next payday.

Particularly if you have just incurred an unexpected cost such as a medical bill or a car repair that had to be done urgently, your monthly finances may take a hit one month and then, when an unexpectedly larger than usual utility bill comes in, it can seem like there is nothing you can do.

When your utility bills start adding up, it can be hard to find the money to pay the money you owe and you may find yourself needing a payday loan to help.

Can Payday Lenders Help with Utility Bills?

Payday lenders could help you out and enable you to borrow money fast to pay for something urgent like a utility bill or an unexpectedly high bill of any sort. You should always consider the alternatives to payday loans online for any purpose first, but many lenders will be able to provide specific payday loans like those for vehicle repairs or specifically designed and tailored emergency cash loans for those urgent financial emergencies.

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 debt.

If you know that you can repay your payday loan at the agreed time and you just need the money for your utility bill to tide you over until your next payday then a payday loan could be a good option to pay your bills

Remember though, you always need to be sure you can repay your loan on time otherwise there will be bad financial consequences for you. 

What If I Frequently Struggle to Pay My Utility Bills?

If you frequently struggle to pay your utility bills, then it is not wise to take out a payday loan in order to try and help you pay off those bills. Payday loans should never be used as a long term or regular solution to financial problems and you should always consider how you could get the money you need without opting for short term loans.

You should never 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 bad credit or a poor credit history and need specific bad credit loans or other loans designed for people with poor or very bad credit.

Instead it may be worth looking at debt management to see if you can control your utility bills to make sure that you can become financially stable again in the future, such as using your gas and water a little less during the week. Seeking professional financial advice is crucial if you are experiencing severe debt and struggling to pay for everyday costs. 

What Are the Alternatives to Payday Loans for Utility Bills?

If you find yourself needing a payday loan for utility bills, before you go ahead and apply for payday loans online, think about and strongly consider what the alternatives to payday loans in these circumstances would be. Options to consider may include:

  1. Borrowing Money From Family and Friends – Your nearest and dearest may be able to lend you the money you need in order to see you through a tough time with your finances. If you are struggling to pay the bills, it may be that a friend can help you and give you a 2000 dollar loan for example to pay all your bills off, with no interest, or a family member could help you out in a similar way.
  2. Utilizing Your Credit Card – You may be able to utilize an existing credit card to pay off your utility bills. You should always check first, but it may be the case that the interest payments on a credit card debt are considerably lower than with a payday loan, making for a cheaper alternative to a loan for utility bills.
  3. Speaking To Your Utility Provider – Whether it is your water, gas, electricity or even your internet or cell phone network provider, the company providing you with the utility you are struggling to pay may be able to help you with a payment plan to get back on your feet. A payment plan for any utility bill, should you need it, can help you stay on top of your bills and can help you avoid falling into debt.
  4. Using a Secured Loan – A secured loan, like a title loan or even a loan secured against a property may be able to be utilized to pay off a utility bill, particularly if it is a large bill. Secured loans can come with lower interest rates, as there will be a high value asset acting as collateral for the loan, reducing the lender’s risk. However, if you fail to repay the secured loan, you stand to lose your property or vehicle.

Where Can I Get Help to Pay for Utility Bills?

If you’re struggling to afford your utility bills, then there are many options to consider and money borrowing methods. As set out above, you should seek alternative methods to payday loans if you cannot afford to borrow and repay one due to ongoing debts. Doing so will ensure you avoid future debt and worsening your credit score.

Conversely, you can apply for a payday loan in several states in the US. You must first live in a state where it is legal to borrow a payday loan, and also be of legal age and a US citizen. Many in-store lenders provide payday loans, but another popular method to borrowing a payday loan is through a lending or loan matching company online. Applying online may save you both money and time.