Have you ever heard of the phrase “small but terrible?” It used to said a lot many years back when I was still in school. I guess culture dictates that small things – even small people – might not be as good as big ones. I don’t know where it originated but the idea was that if you are small, then you might be missing out on some things. Then came this expression. It was used to describe people (and things, even) that are small and yet came through spectacularly. For example, this girl may be small for her age but she has an awesome personality that makes her shine amongst her peers. Get the idea?
This phrase came to mind as I was mulling over payday loans and how they can help an individual in any given situation. One of the things that I have heard said about payday loans is that they might not be useful for huge expenses as the limit as to how much one can borrow is relatively small. To a certain extent, this is true. Most payday loan lenders limit their loans to $1,000 although some may offer as much as $1,500. These upper limits, however, are only normally offered to returning borrowers. That is, borrowers who have used the payday loan service at least one time before. For first time borrowers, the limit could be as low as $300 or thereabouts.
Now if you need money for a big thing, say like a brand new car (whole payment), then it is understandable that a payday loan just might not be able to meet your needs. However, it is important to remember the basic premise of a payday loan. A payday loan was designed to meet urgent and unexpected needs. This certainly does not include buying a brand new car! That is why there are other products in the market – such as car loans!
On the other hand, let’s say that you have a car and it suddenly breaks down. If you have insurance, it might cover all of the expenses incurred by the break down. Normally, though, there are other expenses that might not be covered by your insurance. Now this is the perfect situation for a payday loan. Several hundred pounds should be more than enough to help cover everything.
Another situation where in a payday loan would do perfectly is when you find a very good deal on a car – brand new or otherwise – and you just cannot pass up on it. Let’s say that you can afford the monthly payments but you do not have enough for the down payment. The higher limits of a payday loan just might be enough to get you through.
As you can see, payday loans may offer relatively small amounts as compared to other kinds of loans in the market BUT they can answer reasonable demands that need to be addressed with short notice. This is where their power comes from. Remember, a little can go a long long way if used properly.