Should you get a Payday Loan if you are on a zero Hours Contract
There are many people that are on a zero hours contracts and this means that they have no definite income. Although many people on these will work full-time it means that they could be asked not to work at any time and then have no income. This is something companies do to save money as they do not have to pay pensions, sick pay or other benefits. Some workers like it as it is more flexible for them or because it is the other way that they can get a job, but others would rather have a permanent contract.
If you have a job like this, then your job could be more risky than others. This is because your employer can just tell you not to turn up to work one day and you could be out of a job either for a short time or permanently and you will not have an income coming in. Obviously this will make things very difficult with regards to paying or things. Even if you have savings, they will not last forever and if you do not find a new job quickly, it could be difficult to manage. If you have a loan of some sort, then things could be even more difficult as you may not be able to afford the repayments.
There is always a risk when you take out a loan that the repayments may be too expensive. However, if you do not have a guaranteed income then it can be even more of a risk. Some lenders will not let you borrow anyway if you have a zero hours contract which means that the loans that you get to choose form could be more expensive. Lenders that take on more risk will charge more you see, because they expect some of their customers to not be able to make their repayments and therefore this will cost them money, which they charge all of their customers to spread the cost.
All loans should be considered carefully, whether you have a permanent job or not. It is good to calculate how much the repayments will be and consider how you will be able to afford them. Think about whether you will easily pay it now and what might happen if you have no income. Think about what might happen if interest rates go up and you have to pay back more as well. It can be worth writing down how much you earn and how much you spend each month to see what the difference is and how easy it will be for you to be able to manage. Then you can make an informed decision as to whether you can afford the loan. It is also worth thinking about why you are taking the loan and whether you really need to do so. Consider whether you can wait and save up for what you want instead. Loans should really only be taken in an emergency unless it is for a purchase that will end up making you better off in the future such as a mortgage, student loan, career development loan or something like that. It can be hard to decide which are worthwhile, but discuss it with family and friends in order to help you to decide.
Some people might choose to use a financial advisor to help them. They will be able to help you to find the cheapest loan and to calculate what the repayments will be and whether it is something that you can afford. Although you have to pay them, it can be well worth it if they end up saving you money. They can also help you to decide whether a loan is a good idea for you or not if you would rather not discuss this with family and friends. Some people would rather keep their finances to themselves or share with a stranger like this rather than going to people they know. Alternatively you could try a debt counselling service that should be able to help you to decide. They are often free to use as well and will be as knowledgeable as a financial advisor but you may have to wait longer to get their help.
