Is a Payday Loan Right for me?

Deciding whether a payday loan is right for you can actually be quite a tricky decision. There are a lot of things to consider and it is worth giving up some time to think about it properly before you rush in.

  • Do I need the money? – the first thing to consider is whether you really need the money. This might seem silly but it is good to think about as when we are in a panic we can often miss things. So start by carefully looking at your financial situation. Think about whether you have enough money to cope without the loan. You might have savings that you had forgotten you had or that you were holding onto for something else. If you do, then think about whether they might be best used for this purpose. It is also good to think hard about what you are spending the money on. Think about whether you really need to spend the money. It might be that you can wait until you save up or until you get paid or that you can go without having it at all. It can be hard to step back and think logically about it. However, if you do, then you could find that you get yourself into a better frame of mind and can sort your situation out more easily.
  • Can I afford the repayment? – It is also wise to find out how much you will be expected to repay and think about whether you can afford this. To find out, you will be able to use the calculator on the lender’s website. You can just enter how much you are borrowing and how long for and it will let you know how much you will need to repay in full. You will then be able to take a look back at your bank statements and see whether this is an amount of money that you will be able to afford. If it is not then consider whether you can borrow less to make it more affordable or whether there is anything else that you can do perhaps to earn more money or spend less in the few weeks until you will need to repay the loan.
  • Is it an emergency? – it is good to think about whether you really need the money even whether it is an emergency. Payday loans were specifically set up to help people who needed money in an emergency and many forms of borrowing are also good for using in this sort of situation. If it is an emergency then you need for borrowing will be urgent, but if not, then it may be that you will be able to wait. If you can wait until you are paid before you need the money then it will be better to do this rather than take the loan as it will be cheaper.
  • Do I have other options? – it is always good to look at the alternatives. You will have already looked to see if you have savings that you can use, but it is good to also look at whether you have any other ways that could be helpful. It is always good to look at all possibilities as this will enable you to make a well-balanced decision. Just taking a loan without thinking could be something you regret, but if you look at all of the alternatives and still feel the loan will be the best solution then you will not have any regrets and wonder whether there was an alternative thing that you could have done, which would have suited you better.
  • Am I the Right type of person to get a payday loan? – it might feel like there is a certain type of person that a payday loan is for and you may not feel like you fit in. Perhaps someone that has a poor credit record, isn’t good with money, has lots of loans or whatever. However, there is no typical payday borrower, everyone is different and has a different reason for wanting to borrow money. You just have to forget whether you are the right type of person and just think about whether the loan will be right for your needs.

It is worth noting that a payday loan is only for a few hundred ponds and so will only be suitable to pay for cheaper items. You will have to repay it all in one go and so you need to make sure that you are able to do this considering your financial situation. However, as it can be arranged quickly and easily and no credit check needs to be done it can be useful for a lot of people. It is therefore worth thinking about whether it is something that will be useful for you.

Leave a Reply

Your email address will not be published. Required fields are marked *