1. Mortgage Payment

Sometimes, you become short of cash and can’t make ends meet when you need to. You have a job and your paycheck will arrive soon, but meanwhile, you don’t want your credit to suffer. How do you get out of this situation? You could take out a short term small loan to pay your home mortgage. This is one of the lesser known reasons for payday loans. Many people know that you can use a payday loan as extra money for a vacation but may not be so familiar about using it for mortgage payments.

2. Private School Tuition

As a student, you may not have family who can pay for your schooling or education. Private schooling is expensive. It is good if you can get your schooling paid off as soon as possible. Your school may not accept outside funding from the state. Learning all day is hard work. It is even harder to take on an additional job while you are at school. If you also have to work in a part time job, you may not have the time or energy to concentrate on your studies. Taking a student loan is an option but this is something you will be paying back for a long time. A payday loan is different because it loans a smaller sum, it is a short term cash loan with a one-time repayment.

As a parent, you know that private schooling is expensive because they try their hardest to provide the best possible education for your child. School fees range in the thousands of dollars each year. You can get up to $1500 each time for a payday loan, so this is helpful as additional payments for tuition. The amount you can get is smaller than a student loan. Then again, if your child takes out a student loan, you will be paying this back for a long time. In comparison, a payday loan is a short term, one-time repayment loan.

To qualify, you have to be 18 years old or above, have a job and be earning at least $750.

3. Entertainment

If you are able to budget well, payday loans can be used for other reasons, apart from emergencies. How can a payday loan be best used for this purpose?

1. Someone you know is having a last minute birthday party tonight. You want to go and and you need to get a birthday present for him/her now. You’re short on cash at the moment but your paycheck will be coming in next week.
2. You need to buy some new clothes for your special big night out.
3. Romantic dinner and night out at a hotel in the weekend. You hardly get any weekends off and this is the only one you will have for sometime to come.
4. There is a fantastic one-day sale today and you really want that TV or that brand-name handbag or that computer.
5. Last minute sports tickets to a big game that is in town.
6. Tickets to a concert. You have waited a long time to see your favourite band play and the tickets are on sale right now. If you wait until payday, those tickets will definitely be sold out and you will miss out.

4. Pay Your Phone Bill

Our phone is one of the most important equipment we own. We really depend on this nowadays. Sometimes the bill can be really high, especially if you go over your limited numbers of minutes, and that’s really easy to do. If you don’t pay even one phone bill, your payment could go really high and then, it will be even harder to pay your phone bill off later on. It would be so much better if you could pay your phone bill on time. You will be able to do this with a payday loan. This way, you won’t have to miss a payment and be penalised, your credit rating will be safe and you’ll be able to continue to keep in touch with your family and friends, send text messages and browse the internet.

5. Paying Off Your Overdraft Fees

You just realized you have made a mistake and wrote out 10 small checks, each for $10, without having enough money in the bank to cover these checks. Although the check amounts are small, the bank could charge over $300 in overdraft fees for lending you $100! Given this situation, it would be better if you took out a $100 payday loan to cover these checks. The $15-$20 you’d be paying for payday loan finance charges would certainly be less than the overdraft fees of more than $300 you would otherwise have to pay.

6. Paying Off Other Payday Advances

Please note that taking out a payday loan to pay off another payday loan is high risk. This should only be used as a last resort, when you have no other options. You should always pay off outstanding loans before taking out additional loans. This way, you build a good track record with your lender. Chances are, if you have a good track record, they will lend money to you again in the future. If you are unable to pay off your payday loan and instead, use another payday loan to pay off the first payday loan, this could result in serious financial consequences. So, be careful.