Can I Use Payday Loans to buy Gifts?

There are some loans which can only be used to buy certain things. However, with other loans you can buy anything you wish. This is actually the case with a payday loan, where the lender will not ask about where you are going to spend the money and so you could be able to spend it on gifts. However, it is worth thinking about some of the features of the loan and whether this would make it suitable to spend on gifts or not.

Only Lend Small Amounts

With a payday loan like those offered by Boutell Loans, you will only normally be able to borrow up to £1,000. This may be enough money to buy the gifts that you want but it may not be. Even if it is enough, you may find that if you are a first time borrower you will not get access to that much money. This is because you will find that some lenders will only lend smaller amounts to first time borrowers and so you may only be able to get a few hundred pounds. Again, this could be enough money for you anyway, but if you need more then you may need to find an alternative solution.

Need to be Repaid Quickly

It is very important to realise that a payday loan needs to be repaid really quickly. This means that you will need to make sure that you know when this is and that you will be able to afford to do it. You will usually find that it will need to be repaid on the next day that you get paid, which is likely to be in a few weeks time. You will also find that you have to pay everything that you have borrowed as well as the interest and fees all in one lump sum. So, you will have to find a chunk of money. It is helpful that it comes out on the say that you are paid as you are likely to have the money available to be able to afford it. However, you may also find that you will have other things to pay on that day as well, perhaps you may have direct debits set up to pay other bills. Therefore, you will need to carefully calculate how much will come in and how much you will need to pay out and you will then be able to work out whether you think that you will have enough money to repay it and cover everything else. Remember that you will have other things to buy through the month as well as those items that you buy at the beginning. It can work out, but you need to be careful to check first, then you will know whether it is something that you will be able to afford.


It is a good idea to think hard about the cost of the loan as well. All borrowing costs money and you should be able to find out how much it will cost before you take out the loan. Then you can decide whether you think that it is worth it. Think about the fact that you will need to buy the items and as well as paying the cost of them, you will also need to pay for the cost of the loan. It is good to have a think about whether you will be happy paying the amount that the gifts cost plus the cost of the loan or whether you feel that it makes the gifts too expensive.

As with everything we plan it is also wise to think about alternatives. It could be that you could not send gifts, you make things instead or you could buy cheaper items. If you do decide to borrow, compare the different borrowing options and make sure that you are using the one that will suit your needs the most and compare the costs of course to see which will give you the best value for money.