You’ve probably heard of payday loans, or cash loans, but do you understand how they work and why people turn to them for financial help?

Cash loans often make the headlines for all the wrong reasons but there are people out there that genuinely need a little extra help and these products can fill a vital niche in the lending market.

Here are five of the top reasons to get a cash loan:

Unexpected expenses

Consider your monthly budget: do you take one-off and unexpected expenses into account? Most of us think about the things we pay each month, like rent, insurance or utility bills, but unfortunately there are often other things to consider such as car repairs, kid’s school uniform and so on. A cash loan can provide a vital form of financial relief when these unexpected costs arise and monthly budgets are unable to cope with them.

You’re fallen behind on bills

It can be really difficult to keep up with bills, especially if you’ve suffered from a fall in income or had to pay out more money elsewhere. Once the reminder letters start coming through the door, the arrears feel like they’re escalating even quicker. A cash loan can help you get back up to date with your bills.

Unauthorized overdraft

After all those direct debits and standing orders have left your bank account, you might not be left with much cash or in some cases you might have actually gone into an unauthorized overdraft. There are all sorts of charges and penalties associated with this so it’s wise to repay it as soon as possible and a cash loan could help with this.

Only borrow what you need

When you need a few hundred pounds to tide you over it seems silly to request a bank loan. Your friends and family might not have the cash to help you so where else can you turn? Well, if you need between £100 and £1,000, a cash loan might be the ideal solution.

Access cash fast

If you need cash and you need it now, there are very few ways to get your hands on it unless you are able to borrow from someone you know. Cash loan lenders can sometimes deposit the funds into your bank account in less than 15 minutes so you can access the money almost instantly.

If you have never borrowed before then it is important you understand exactly what is involved so click here for advice about how to use a cash loan.

It’s always worth getting financial advice before accessing credit and you can visit reputable sites for more information on the credit options available to you.