Author: admin

Five Top Tips on Repaying Your Payday Loan


There are many companies now offering payday loans and many people that now take them out. The loans are attractive to many people as they are available to those with a poor credit record which can give some people borrowing options that would not normally have had them. They can also be arranged very quickly which means that if someone needs money in an emergency, even with bad credit then they are available for them. However, like all loans, some people have trouble in repaying them. It is good to have a plan for repaying them so that you do not get into trouble.

Make sure you know repayment amount

It is therefore really important to make sure that you start by making sure you are aware of how much you will need to repay. You should find that the lender will give you this information. You need to note it and think about it and how you will repay it. It can be easy to focus on repaying the amount that you borrow without remembering that you also have to repay the interest and fees as well. You need to find out this whole amount.

Set direct debit on right date

You will find that the lender will want to set up a direct debit so that the loan gets repaid on the day that you are paid. Make sure that this is set up on the right day. Some lenders want to set it on the day you are paid but if you are not paid until later in the day than when they take the payment, you will not have the money available. Therefore, it could be wise to get it set up for the day after you are paid. Make sure that you get the date right. Some people are paid on a specific day each month but if you are paid on the last Friday of the month or something like that, then the date will change so you will need to be careful to make sure that you get this right.

Only borrow what you can afford to repay

It is really important to think about the amount that you will need to repay and how you will afford it. Consider how much you are paid as well as your other monthly expenses and whether this will be enough for you to be able to afford to repay it and manage to buy everything else that you need to buy. This may be harder than you think so make sure that you work through all of the figures before you apply for the loan. You should be able to do this by looking at your bank statements and looking at how much money you have coming in and going out each month and whether you have any spare money that you will be able to use for a loan repayment.

Reduce spending as much as you can

It can be wise to reduce spending as much as you can. This will mean that you will give yourself a better chance of having the money that you need available to repay the loan. Do this as soon as you take out the loan and continue to do it until your loan is repaid and you have paid all of your other necessary expenses. You may need to do this for a few months at least before you feel that you are back in easy control of your money. It could mean that you will have to only by the basics and go without luxury items for a while.

Look for opportunities to earn more money

It can be a good idea to think about whether you might be able to find some ways to earn more money. This will help you to be able to more easily afford the loan repayment. There are many things that you might be able to try such as doing some overtime in your job, selling things you own, doing some online work or doing a second job. Obviously, you will need to find something which fits in with your lifestyle and skills.

Many of these tips will apply to any loan. It is so important to make sure that you do not rush into borrowing. Make sure that you are well prepared and know how much you will have to repay and when. This should enable you to work out whether the loan is something that you will be able to afford and that you will be able to repay. It can be tempting to see the opportunity to borrow and think that it will solve all of your problems. However, focussing on the repayments and managing those will allow you to be able to make sure that taking the loan out is the right idea for you and that it will help you rather than create more problems for you.

Should I Teach my Children Never to Borrow?


As parents we want to equip our children with the tools that will help them in life. Financially, they will learn a little bit in school but it is really up to us to build on that teaching and make sure that they know everything that they need. It is good to lead by example, but if we feel that we are making financial mistakes then it is wise to explain this to them and why you feel that what you are doing is not right. This will allow you to be able to help them to learn form your mistakes. It is not as simple as we think though and many parents will teach their children to avoid all types of borrowing but this may not be a wise move.

The advantages of borrowing

It may seem that borrowing is just an expensive inconvenience but it actually has many advantages as long as you use it wisely. For example, many people would not be able to afford to go to university without the student loan scheme. Many people would not be able to buy a home without getting a mortgage and many businesses would not be able to expand without a business loan. Although the loans will still cost you money, you will advantage financially in the long run. For example, a student should be able to get a better paid job as a result of doing a degree and they will only have to repay the loan if they earn above a certain salary anyway. A mortgage will allow a person to no longer have to pay rent and they will be able to own a property that is likely to increase in value more than the cost of the mortgage. A business may be able to expand enough to bring in a lot more profit which will cover the costs of the loan and more.

As long as you pick a loan that is right for you and will buy something that will significantly improve your situation then it is not bad. Comparing the loan types to make sure that you use the right one and finding one that is a competitive price is also important as you will then not be paying more than necessary. It is also very important to make sure that you can afford the repayments. This is because if these are not paid on time you will end up having to pay additional charges and this will make the loan much more expensive. The stress of not making the repayments can also cause problems for you. So make sure that you are able to manage those repayments and think about how you will do this in the long term as well as the short term so that you can be confident that you will manage.

The disadvantages of borrowing

If you borrow money to buy items then you will have to pay extra for them. This is because you will need to pay interest on the items and there may be charges that you have to pay as well. Sometimes it could be worth paying this extra, particularly in the examples explained above. However, if you are buying luxury items, then it could be wise to wait and save up for them so that you do not have to pay the extra.

Some people will get into trouble with debts because they cannot afford the repayments. It is therefore really important to make sure that you can afford the repayments when you borrow money. You should be able to ask the lender how much the repayments will be and therefore be able to see whether you can afford them. By looking at past bank statements you should be able to see whether you would normally be able to afford them or whether you can cut your spending in any areas in order that you can afford them.

If interest rates go up then this can be a big problem for borrowers. Those that are on a variable rate of interest will find that they will have to pay more each month for their loan. This can be a problem if they are only just managing their repayments. It is therefore really wise to think about what might happen if the rates do go up and whether you will be able to cope. Having a plan in place in case of this occurrence can be really wise and will hopefully protect you from the stress associated with an increase in rates.

Some people find that being in debt is stressful for them. Just the thought that there are debts outstanding that need to be paid can be a constant worry for them. If you feel like this then borrowing money may not be a good idea for you. Constantly worrying can be a cause of illness and so it is not good to do this.

Scroll to top