There are times in life when we have to deal with expenses, but do not immediately have the money to do so. To buy a house, build or renovate it, for example. But also to buy a car or replace a faulty boiler.

In this case, you can apply for a payday loan to banks and financial intermediaries. Lenders can possibly advance you the money you are missing. That money, you pay it back in installments. In exchange for this payday loan, you must pay interest and fees.

There are different types of payday loans. If you are an individual, you will be offered a mortgage or consumer credit:

  • A mortgage payday loan is an amount that you borrow to buy a home, land, or to finance work at your home. Mortgage credit usually involves a larger amount with a longer repayment period;
  • you plan to buy a car or a new television, you have to organize a wedding, you have to finance private needs? In this case, you can apply for a consumer credit . Unlike mortgage credit, the amount borrowed is often smaller and the repayment period is shorter.

But do you really need a payday loan?

If you think you need a payday loan, you must first ask yourself a first question: do I really need this payday loan? What are the possible alternatives?

If you dream of owning your own home, it is likely that you will have to take a payday loan over 20 or 30 years for a big part of the price. This is the case for most new owners. Above all, it’s important that you know where you are going in advance: assess how you and your family will manage the monthly repayment of this payday loan, as this repayment can be a very important item in your monthly budget.

Try to save a maximum in advance. Because the more money you have put aside to invest in your home, the better the terms you will receive from the lender. The monthly repayment will be less important and you will save interest!

For more information on the best way to save to buy a home, we recommend you to consult the section savings and investment .

For more information on mortgage payday loans , we recommend you to consult the section about this.

You may also be faced with other expenses for which you do not have money immediately available, such as a new car or the wedding of one of your children. Here too, you can apply for a payday loan from a lender. But the consumer credit is usually not free: you have to pay back the amount borrowed, but also interest and fees. Think carefully before taking a payday loan for such expenses. If you know for example that you will have to replace your car in three years, you have two options:

  • in three years, you will take an expensive payday loan and will have to repay a large sum every month;
  • or you are starting now to put a small amount aside each month. After three years, the money saved will be a great help in the purchase of your new car.

You can also prepare for some unexpected expenses, such as repairing a washing machine or car, by creating a savings reserve. 


  • Before taking a payday loan, ask yourself the question: can I repay this payday loan? If you have doubts, do not take this payday loan or borrow a smaller amount.
  • Consider postponing your purchase somewhat. You can save the necessary amount instead of immediately making the purchase and be forced to borrow. Borrowing costs money and saving money!