In the UK, payday loans are generally regulated by the FCA (Financial Conduct Authority). Reports in 2018 stated that payday loan lenders provided approximately 5.4 million loans each year, portraying the huge influence it has in the financial industry. FCA regulation has prevented the gung ho approach that was initially taken by payday loan lenders, ensuring they don’t take advantage of desperate situations.
Payday loans can offer much needed financial assistance when dealing with a health emergency. In cases where a medical condition is not life-threatening, hospitals are not obliged to provide treatment to people who can’t pay for the services. Payday loans online allow you to borrow emergency funds from your smartphone without having to leave the hospital’s premises.
What is a payday loan?
A payday loan is a short term loan that can be taken against your next paycheck. The money is provided by independent lenders, with terms and conditions governed by the particular laws of the state involved. Unlike traditional institutions, payday loans are less discriminative in the approval of loan requests.
As long as you’re 18 years old with valid proof of income, you can qualify for a payday loan. Applying for the loan can be accomplished in a few simple steps. Simply submit your loan request and personal details to the lender, agree on the terms of the loan, and have the money sent to your account.
The maximum amount you can receive from a lender depends on varying factors, including your level of income and related proof. There are few established payday loan lenders in the UK, and it’s important to ensure you pick a valid choice when looking for a guaranteed solution. FCA reports that just ten lending companies serve over 80% of the payday loan market in the UK.
Using payday loans to meet your health emergency needs
Medical emergencies are rarely predicted by those who fall victim to them. If you or someone in your family is suddenly injured, finding the financial resources to go to the hospital isn’t always an easy task. Medical bills can be notoriously expensive and could leave you short on funds if they find you in between paychecks.
Even if you’re covered by an insurance policy, some emergencies might require additional funds to address. For example, some policies don’t cover the cost of prescription drugs, while others might not include inpatient charges for extended periods. Issues like glass prescriptions and dental care are also rare in general medical cover policies.
Payday loans represent a viable option when you need money quickly and don’t have the time to try conventional loans or don’t qualify for that option. Some lenders offer same-day financing services, enabling you to receive funding in a few hours.
Some of the reasons you should consider payday loans when dealing with medical emergencies include:
Payday loans have a wide presence in the country
There are over 20, 000 payday loan lenders across the country, giving you numerous options to choose from when looking for a suitable partnership.
As long as you’re not located in a state with anti-payday loan laws, you will have hundreds of lenders to choose from. If you’re facing an emergency and don’t have time to take chances on 50-50 opportunities, opting for a payday loan is your best shot at success.
According to statistics published by the CMA, there were over one million payday loan borrowers in 2012, with that number predicted to rise in the coming years. The payday loan industry averages over one billion pounds in loans each year, indicating their necessity for many people.
Studies also indicate that a majority of borrowers repay their loans before the due date, reflecting the lack of burden that comes with the financial assistance.
Having to jump through multiple hoops just to be denied a loan application can be disheartening when faced with desperate times. Choosing to take a payday loan to handle your medical emergency greatly improves your chances of receiving financial assistance at the end of the process.
Flexible payment plans
Different lenders offer different payment plans to their borrowers. In some cases, you’re given the opportunity to choose between various options when discussing the payment structure of the loan received.
Some choices can include paying the full amount outright on the due date, paying certain sums at particular periods, and seeking an extension for the loan in cases where you run into trouble meeting the initial deadline.
Finding the right payment plan for your needs requires patience, as you will have to go through a few options before finding the right one. If you already know the kind of payment plan you’re looking for, you can use elements like the kind of interest earned with the loan or the due dates involved with repayment to search for suitable options online.