Many workers will find that when they are off work sick, they will get sick pay equivalent to what they get paid and from the first day they are ill. However, not all employers provide this and so they may be able to get statutory sick pay but this will not start immediately. There will also be those that are not even eligible for that. This covers anyone that is self-employed, a freelancer, contractor, temping or on what is commonly known as a zero-hours contract or part of the ‘gig economy’. This means that there are many people that will not be able to get sick pay and they may be looking for alternative ways to manage their finances when they are unwell. This might include things like getting a loan. It is worth thinking about this very carefully. You will need to consider a few things before deciding whether to take the loan and which one will be best for you.

How long will I be ill?

It is a good idea to think about how long you expect to be missing work. This is because once you take out a bad credit loan you will need to repay it. This could be pretty quickly and so you need to be sure that you will be better and able to repay. If you have a sickness bug, cold or flu then it is likely that it will not last long. However, sometimes these things can lead to more serious conditions such as dehydration or pneumonia and you could miss a lot more time off work. It is a good idea to think about the chances of this happening due to your age and current health. Also consider how you normally are when you get this sort of illness and whether you can normally shake it off pretty quickly.

How much can I afford to repay?

It is wise to also think about how much you will be able to afford to repay. With a payday loan, you will have to repay all of the money that you borrow when you next get paid. This means that you will need to be sure that you will have enough there to cover it. If you have been unwell and not earning and not getting sick pay or getting a reduced pay, then you could find that there will not be enough there to be able to afford to repay the loan. It is also worth noting that you will not only need to repay this loan but you will need to cover the costs of everything else you normally buy as well such as food, utilities, rent and things like that. So be sure to check this to make sure that you are confident that you will manage it all before you agree to the loan.

Does the loan offer good value for money?

It is also well worth checking to make sure that the loan will offer you good value for money. Consider what you are getting from the loan and how much the loan costs and whether you think that this will be worth it. If you think it is a bit expensive then do check other lenders as costs can vary as they can between different loan types. You need to think about whether you feel that it is a good idea to pay out this much money for a loan compared to what else you might spend that extra money on.

Will I get a loan?

It is also worth considering whether you will get a loan. While payday lenders do lend to those people who have poor credit ratings they still will want to check that you will be getting an income. This is because they will want to set up a direct debit for the money to be paid off on the day that you are paid and if you are not going to be paid then there will be no money to repay the loan with. It can be worth checking with a few lenders first, to see whether they will be okay with lending you money.

There is a lot to think about. It can be scary thinking about being ill and what you will do for money. It can be really wise to be very careful with your money and build up some savings and so if you are unwell, you will be able to use that rather than having to borrow anything. Some people also get some insurance which will pay for their mortgage or other loans so that they can be paid if they are not able to. You do have to be careful with this insurance though as it is expensive and will sometimes only pay out in very precise circumstances.

It can be tricky to know when a good time might be to borrow money. However, there might be certain times that will be better with regards to the economy as well as certain times which might be better with regards to your personal financial situation and it is worth considering both when you are thinking of taking out a loan. You should do this for all loans, but this will focus specifically on payday loans.

The economy

There are lots of different and complex things that go in the economy and have different impacts on individuals. With lending it can be the interest rate that has one of the biggest impacts. This means that if interest rates are low, which they are at the moment, it can be a good time for borrowing as it can be cheaper. However, we do need to be very careful. Firstly, some loans will still be more expensive than others and so we should not feel that just because rates are low, that means we can go for anything. It is just as important to make sure that you are picking the right loan for you and the lender that offers the best value for money.

Also, things like interest rates are unpredictable. It is unlikely that anyone would have predicted how low they are at the moment and how long they have been this low as this is not something that has ever happened before. Economists tend to look at trends and patterns and so look to what has happened before to see what might happen now and so they find it hard to predict situations like this. If the experts find it hard then it is even harder for those of us that are not.

However, it can be worth thinking about the current situation and how that might impact you. If the interest rates are low and you have other loans such as a mortgage, then this could mean that you are better off. This could mean that you may not have so much need for a payday loan because you have more money available or it might mean that you will have more money available to repay it. However, if you have savings, then you will be getting less interest paid on that and so that will leave you worse off.

Your situation

You also need to think about your situation as well. Consider your income, for example. If that comes form work then think about how secure your job is, whether you pay is likely to go up or down and things like that. As a payday loan is only short term then it is really those that do not have fixed hours or fixed pay that would be more likely to be affected by things like this.

It is also worth thinking about whether it is a particularly expensive time for you. It might seem that would be an ideal time to borrow money, but actually it is not. This is because you have so many things to pay for that it may not leave enough left to repay the loan.

It is really important to make sure that you are able to repay any loan that you take on. You need to therefore be very aware of your situation and what you will be able to afford. You need to think about the amount that you will be expected to repay and when you need to repay it and this will allow you to be able to know whether you can afford it. Look at your own bank statements to see what you would normally be able to afford and this will allow you to calculate whether this might be the right thing for you.

Taking out any loan should be a big decision for you. With payday loans, we often pick them because we are in a hurry to get the money that we need. They can be organised really quickly and some lenders will even get you the money that you need in a few hours. It is important though, to make sure that you take time to think hard about whether a loan will be a good idea and which type of loan will be the best. It can be tricky, especially when you are in a time of panic, to take the time to fully check over the loan and to make sure that you are getting the best possible loan as well as to check your own circumstances but it is vital that you do so. It can even be worth asking someone else to help you so that you will not have to sort it all out on your own. They may be able to take a less emotional view of it all and this will enable them to provide useful advice.