If you are interested in payday loans or considering whether to take one out or not, you may wonder whether they are suitable for everyone. You may wonder, perhaps whether they are suitable for you because you may not feel that you fit the criteria. In fact, payday loans are probably suitable for most people. It is good to make the loans work for you though. This means that you should take advantage of them rather than letting them take advantage of you. There are a few things that you can do to make sure that they do work for you.
- Only borrow what you need – it is always wise to only borrow the amount of money that you need. Although this sounds obvious there are many people that will borrow a bit extra. They may feel that they will be able to enjoy a few more things if they have extra money. Perhaps they want to treat themselves or just have some extra money so they do not have to struggle to manage. However, it is worth trying not to do this. It is good to remember that you will have to pay money for every penny that you borrow and so if you can keep the borrowing to a minimum then you will owe a lot less money and it will be cheaper and be easier to repay. If you are still tempted then calculate how much more you will have to repay if you borrow more. There should be a calculator on the lenders website where you can do this calculation. Look at how much extra you will have to repay and think about whether you can afford this and whether you think that it will be worth it, considering the extra that you will have to pay.
- Borrow for the shortest time possible – As well as borrowing extra money, borrowing for extra time will also cost you more. It is therefore worth making sure that you do not borrow for more time than necessary. Only take out the loan when you really need to. So if the loan takes a few hours to arrange and you need the money in a week’s time; make sure that you leave it for five or six days before you take out the loan and you will reduce the cost of the loan because you will not be paying that extra five or six days interest. You may not think that it will make that much difference. It is wise to therefore use the calculator non the lenders website, as above and you will be able to calculate the difference in cost between borrowing money right away or waiting for the five or six days until it is much closer to when you need it.
- Repay on time – like any loan, you will need to repay it on time. If you do not manage to do this, then you will get extra charges and so the loan will end up costing you more money. It is therefore important to make sure that you have enough money to be able to repay it on time. It should be set up to be repaid on the day that you are paid, so you should have enough. However, you will need to make sure that there are not other payments going out of the account which will mean that you end up being short of money and unable to repay the loan in full. You may need to be careful with what you are spending before that payment comes out. It is wise to make sure that you are aware of how much you need to pay and how much you have so that you are not at risk of not repaying it on time.
- Repay in full – it is also important to make sure that you repay in full. If you manage only to repay part of what you owe then you will have charges to pay. This could mean that the loan will end up costing you significantly more money. This is why it is so important to make sure that you have enough money to be able to afford to pay it.
- Make sure you can manage after the repayment – it is also really important to make sure that you will be able to manage once you have made the loan repayment. It is great to make sure that you are able to repay it on time and have all the money available to do so. However, you need to also think about all of the other things that you need to buy as well. Consider whether you will have enough money to cover all of your other essentials too. You will probably have rent or mortgage to pay as well as utility bills and food. There will probably be contracts and transport to pay as well and insurance and other things. There are many things that we commit to paying or buy and need to make sure that we have enough money for. It is important to calculate whether you will be able to manage these before you sign up for the loan.