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Not everybody will be approved for a standard personal loan as factors such as poor credit, unemployment, health issues and criminal records can prevent them from being able to apply successfully. If this is the case, there are some alternatives available, one of which is a salary loan. In the Philippines, a salary loan is similar to a “payday loan” in the UK. It is designed to allow you to meet the cost of everyday living, even if you are short of cash at the time. Here are the main reasons you may want to consider a salary loan:

1. Emergencies

This is the number one reason that people in the Philippines borrow from salary loan providers. Life can be unpredictable and when accidents happen, things break or medical costs start to increase, it can be difficult to know where to turn. This is where a salary loan may help. You could borrow what you need, with a view to paying it back as soon as you are able.

2. Holidays/Vacations

When life gets stressful and you feel like you need a break, a holiday is the perfect way to recharge and destress. Unfortunately, vacations cost money and once the monthly expenses like housing costs, food and transport have been paid for, you may not have enough left over. If this is the case, you are not alone. Many people choose to use a salary loan to cover the cost of a holiday when they know they can afford to repay the full amount in a short space of time. This means you can pay for flights, accommodation and spending money, even if your monthly income isn’t quite enough.

3. Bills, Bills, Bills

They’re a fact of life and one that not many people enjoy dealing with, but unfortunately, they aren’t going anywhere anytime soon. If you fall behind on bill payments, services can be interrupted and you may even end up in arrears with the gas, electricity or internet company .To avoid this, a salary loan offers you a way to cover these essential costs straight away so you don’t end up getting cut off or creating unnecessary problems. Providing that you don’t use this option on a regular basis, this style of loan offers you a safeguard against falling behind with regular repayments and is something many people in the Philippines do on a regular basis.

4. Special Occasions

Whether it’s a birthday party, wedding or a graduation, life’s little celebrations can sometimes turn out to be a touch more expensive than we would like them to be. Using a salary loan to cover some or all of the cost of those special occasions can be a way of making sure you don’t have to cut corners or opt for the lowest quality option every time. It is highly recommended that you only borrow what you know you can afford to pay back but, in some cases, savings and credit cards won’t quite cover the full amount you need to spend. Things like suit hire, transport, catering and gifts can all add up. Ideally, you should budget within your limits, but at the same time, we only live once, and some moments are too important to miss for the sake of saving a little money.

5. Unexpected Debt

Most of us know how much money we owe, and this kind of situation is thankfully quite rare, however, there are circumstances where you may suddenly find yourself in debt that you didn’t expect to have to deal with. Things like unexpected bereavements, gambling or property issues can leave people in difficult financial situations where they may need a little help to keep to going. A salary loan in the Philippines offers you a way of covering your payments until you can establish your next move. This could be getting a second job or selling unwanted items.

6. Medical Emergencies

Nobody likes to think about medical problems, but they can be a fact of life for many people. In the Philippines, health care is not free at the point of service like it is in the UK, which means you will need to account for this if you planning to move there as an expat or retiree. A salary loan is a way for you to cover any emergency medical costs without having to worry. Providing that you can find a way to make repayments and clear the amount you owe quite quickly, there’s no reason you can’t use this type of borrowing to help you with this essential part of life.

7. Redundancy or Short-Term Unemployment

Though salary loans should never be used as a long-term source of income, they can be extremely useful for covering costs during periods of temporary or short-term unemployment. When you are made redundant unexpectedly, it can be stressful but using credit as a way of keeping up your regular payments and meeting the cost of living can be an effective way to deal with this issue in the short term. Once you have secured more employment, you can make regular repayments to ensure you pay off the loan without too much interest. Ideally, you should be looking for work as soon as you take out a salary loan as this will help you to feel a little more secure about making repayments in the future.

8. Treating Yourself or Your Family

If you know you are going to be getting a sum of money in the near future, but you need to pay for something fairly expensive now, a salary loan is the ideal solution. Treating yourself or your family to something special is a great feeling and providing that you borrow responsibly, this is as good a reason as any to consider taking out a loan, rather than waiting until you have saved up enough money from your regular income. Ideally, this kind of purchase should happen very occasionally but as a last resort, salary loans can help you to afford those little luxuries a little earlier.

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