No matter how well you plan or how much you try to save for unexpected events, sometimes things go wrong. Your car breaks down the same week your HVAC system gave out. You are hit with unexpected medical bills. Your pay gets withheld and you're stuck with less money than you expected for a while.
Sometimes you'll make the decision to dip into your savings for such unexpected expenses. Sometimes it doesn't make sense to do so, since raiding savings earlier than you're meant to can cost a lot of money in terms of interest that you are no longer eligible for.
Sometimes it can make sense to avoid those penalties by taking out cash loans instead. Short term cash loans, known as PayDay Loans, can be a trap. The interest charges on them are punitive and if you're in a financial situation where you're struggling to pay for an unexpected expense, paying off a payday loan out of your next paycheque may leave you needing to borrow again the following month.
Cash loans with monthly payments offer a potential solution. They allow a borrower to spread the expense of the loan across a few months, making the repayments more affordable. They often have a lower APR than a payday loan too, because the people who take them out are considered to be "less risky" than the demographic that tends to turn to payday loans.
Borrow What You Need and Can Afford Cash loans are still a debt. In the ideal world you would pay for unexpected expenses from an instant-access savings account, or from a balance in your current account that is designed to be dipped into when you face an urgent expense. Even authorized overdrafts, paid off promptly, are a good option. Loans charge interest, so you will end up paying more to deal with whatever emergency the loan was for than the event or issue actually cost.
For this reason, it's important that you borrow only what you need, and that you set the payments at a rate you can afford. Spread the loan over more months if you are worried about making payments, and budget carefully. Remember that if you miss payments your credit score could be damaged and this would make it harder for you to access cheaper forms of borrowing in the future.
Cash loans with monthly payments offer an accessible and affordable form of borrowing for people with an urgent need. If you can't use a credit card and pay it off quickly, or you don't have that financial buffer to turn to, a cash loan could keep your car on the road and keep your household ticking over.
Treat them as a product that must be used in a calculated way and make sure that every penny of your funds is working for you, and you may find them useful. If you're struggling with repayments, communicate with the lender. Don't turn to loan sharks or to expensive short term loans. There's almost alway a better option.