Sarah finds herself in a difficult situation. It's a week before Christmas, and her car breaks down on the way to the shops in Napier. She doesn't use her car often, mainly to get to places on the weekend, so usually, it wouldn't be an issue. The trouble is, Sarah needs her car to visit her family in Auckland on Christmas Day, so she can't wait to repair the car the following week when she receives her pay.
The car repairs will cost $450, but her credit card is maxed out and she needs to pay the mechanic tomorrow. Sarah considers her options and finds that a short-term loan will best meet her needs. She will receive her pay at the end of the month, so she can repay the loan without difficulty.
* This is a fictional, but realistic, example.