While cash loans may be accompanied by high-interest rates when compared to other sources of credit, there are several excellent scenarios in life when a cash loan can come in handy and have a dramatically positive impact on your life.
We have all had times in our life when an instant and immediate injection of fast and easily accessible cash can make all the difference between getting through the month and a string of sleepless late nights.
In this blog, we will uncover some of the most appropriate and common scenarios when someone might opt for a cash loan and also try to demonstrate the positive impact that a cash loan can have in these scenarios.
A sudden loss of employment
Nobody plans for or expects a disruption in their employment. But it does happen and often at what seems like the worst time possible. This disruption could be the result of any number of factors. It could be due to the company making you redundant. It could also be due to you resigning from a job that you are finding unbearable to work in or that you need a chance to take a break from work for a month or two to re-centre yourself and find some peace in an otherwise hectic world in which we live.
Whatever your reason for being out of work, a cash loan could be a suitable replacement for your salary which may not be coming in for the next couple of months.
When you find yourself out of work for whatever reason, a cash loan is beneficial firstly because it means that the money you need is available fast, sometimes even instantly.
When this money does come in, another benefit is that you are able to maintain and enjoy the lifestyle that you had become accustomed to enjoying before you lost your job. Undoubtedly, a disruption in your lifestyle can have a negative impact not just in the way you live, but also in your ability to find new work or get your feet back on the ground.
Another added benefit of a cash loan when you find yourself out of work is that it provides a psychological benefit in that it will allow you to feel like the redundancy or unemployment is not as big an issue in your life as it would be if you didn’t have the money coming in.
A once-a-year need for a cash injection
Cash loans, since they are pretty immediate and very helpful, can come in handy when parents find themselves scurrying around at the end of the year, for example, to buy their children expensive and sometimes unnecessary Christmas gifts. Of course there are those out there who will encourage people not to take out cash loans to buy presents for the kids, however as we all know, Christmas has the habit of forcing sentimentality and love for the family on us, and it often makes us feel like we will do anything to make the family happy.
In cases like this, a cash loan is a great way to get that money you need to make those holidays ones your family and kids will remember for life.
Settling mortgage payments before they are due
It may seem like a case of the lesser of two evils, but there is an argument to be made that taking a cash loan out to make the repayments on a property is a better option than not paying the mortgage payment when it is due.
The argument is that if you miss a mortgage payment, or worse more than one in a row, you are demonstrating to the bank that has lent you the money for the property that you may not be able to afford the home, when you, in fact, know that it is just a temporary delay in money coming in.
Of course, there are other options to consider before taking out a cash loan for this reason. For example, you could talk to your bank about a more suitable payment plan on the home loan, or you could also downsize your home if you’re finding that you are continuously unable to repay the mortgage payments.
Getting a cash loan over and over again to pay the mortgage is not a long-term or sustainable solution.
Unforeseen medical emergencies
We certainly wish that this is never the case for you or your loved ones, but there are times in life when emergencies happen, and the worst case scenario unfolds. Often these scenarios involve some form of a medical emergency or medical treatment that needs to be undertaken without any delay to alleviate suffering or even worse save a life.
In cases like this, no one would blame you for opting for a cash loan to repay the medical bills that are coming in. Just like any other loan, medical bills, if not settled immediately will begin to accrue interest, and you could land up owing more to the hospital’s accounts department than you do to the person who loaned you the money to settle the bills.
Of course, best practice and advice is to avoid this situation entirely by ensuring that you and your family are covered by health insurance. However, that can be expensive in itself.
These are just some of the scenarios you might come across in life where a cash loan provides you with an instant solution and more importantly protects you from stress and even bigger problems in the future.
There are many more scenarios in life where a cash loan might be your first call, and Cash Relief is around to discuss these scenarios with you if you’d like.
We are a proudly New Zealand owned and operated business and have been helping Kiwis with their cash loans since 2011. We provide Kiwis with more than just instant cash, but also with transparency and security that there are no hidden surprises or nasty dealings down the line.
If you’re unsure about whether a cash loan is right for you or how much the loan will cost, please get in touch with our team during business hours or phone 0800 081 080.