What Is A Financial Emergency (And What Is Not A Financial Emergency)

In this blog we will be looking at what is and what is not a financial emergency. It is vital that you know and understand the difference as it can help you with your application for a payday loan, and it can help you moving forward in regard to saving and positive money management. Payday and short-term loans are best used in financial emergencies as they are a form of emergency borrowing/lending. They are not well suited to solving long term debt issues, or for spending on frivolous expenditure.

We will begin by outlining for you what situations or events would constitute a financial emergency and would therefore facilitate the taking out of a payday or a short-term loan. We will then detail what we would not consider a financial emergency.

So What Exactly Is A Financial Emergency?

It is important to begin this section by saying that everyone can experience a financial emergency. Even the most well thought out, well planned and well executed budgets can be hit suddenly by an unexpected bill or expense and this can then lead you into financial hardship. A financial emergency is one of these unexpected expenses, and is generally split into three separate categories, as follows:

Your Health (And The Health Of Your Family)

Your health, and the health of your family members, is naturally incredibly important and if effected in a negative sense can be considered a financial emergency. If you are hospitalised or injured in an accident, then you may need to compile funds for emergency private surgery. This can be incredibly expensive. Smaller things can also accrue great cost, such as prescriptions, if many are required. If you are injured to the point that you cannot work your need for emergency financial assistance may raise dramatically if your current place of employment does not offer sick pay.

A much more common health emergency is the need for dental work. Dental work is now only free for those on state benefits, and the more complicated the procedure(s) the greater the cost. If your son or daughter require braces, this will also incur great cost.

Veterinary bills are another example of an emergency that can be a huge drain upon your financial resources. If the beloved family pet falls ill or requires veterinary care then all of us will make sure we have the funds there ready to be used.

Your Home

Your home is your greatest and most valuable resource and it is therefore very important that you maintain it to a high standard. Further to this, if something goes wrong in the home, if something breaks or becomes unusable then it is vital that you repair/replace this as soon as you can to ensure that your home is liveable and remains comfortable and safe. The following are examples of financial emergencies that can occur within your home:

  • Broken pipes or issues with the internal heating system of the home
  • Problems with the electricity of your home inclusive of wiring, fixtures, light switches and fittings
  • Damage to your roof either from a storm/strong winds or due to the roof not having been maintained to a high enough standard
  • Flood or fire damage

Any of the above listed events would absolutely constitute a financial emergency and would need to be rectified as soon as possible. Should any of these happen to you, and you need emergency finance quickly then you can make an application with us and we will get back to you as soon as we can.

Of course, your home consists of many different things and we rely on appliances now more than ever before. Chances are you will use at least one appliance each and every single day. So, when one of these vital appliances breaks down and therefore needs a repair or a full-blown replacement, this can be devastating for you and for your family. The following are appliances that we rely on for everyday life and would need replacing should they break:

  • Fridge/freezer/fridge-freezer
  • Washing machine
  • Tumble dryer
  • Dishwasher
  • Oven
  • Kettle
  • Toaster
  • Microwave

Replacing any of the above is not often as straightforward as it might seem on the surface as each item can come with a considerable price tag. It is important to make sure that you get the best deal, making the most of your money – securing yourself an emergency injection of money should you need it.

Your Working Life

If you, for whatever reason, find yourself without a paying job, whether through redundancy, or circumstances outside of your control, then you can quickly find yourself in financial difficulty. A payday loan can be used to cover the gap in earnings between leaving an old job and finding a new job. In this scenario, a loan from LoanPig can be used to:

  • Pay for a monthly bill, such as a phone bill or a utility bill
  • Pay for your mortgage or for your rent
  • Pay for a monthly car repayment

The above are simple examples and the actual real-world uses of a payday loan in this scenario are vast and varied and especially effective if defaulting on a loan agreement or missing a scheduled repayment would result in the further loss of earning, or the repossession of an item or a vehicle.

Using a payday loan to cover the gap in your expenses can, as mentioned previously, be a very useful tactic. However, we would not recommend that you do this more than once i.e. to cover more than one month expenses as this could cause you further financial issues in the future.

So What Is Not A Financial Emergency?

The answer to this question is surprisingly simple. Essentially, a financially emergency needs addressing immediately, if it is not, then it can spiral or cause further financial difficulty. Something that is not a financial emergency is something that does not cause and cannot cause you greater problems down the line, examples as follows:

  • If a games console controller needs replacing
  • You damage a pair of shoes or an item of clothing
  • You cannot afford a new tattoo


Get In Touch

If any of the financial emergencies that were discussed in this blog pertain to you, or in the future if you find yourself in dire need of quick cash then we recommend that you apply for a payday loan with LoanPig today. You can get in touch with us today to discuss a loan, or if you have any questions regarding any of our services.