How to Ensure you Can Repay Payday Loans
Whenever you take out a loan, it is really important to make sure that you are able to repay it. With a payday loan this can be even more tricky as you will have to repay it really quickly. A payday loan will have to be repaid in full when you next get paid. This could mean that the loan will only last a few weeks or maybe even just a few days and so you will need to be really sure that you can afford to repay it. There are things that you can do though, to give yourself a much bigger chance of being able to repay it on time and in full.
Check How Much You Need to Repay and When
It is wise to start by checking out exactly how much you need to repay and when. You might think that you know this or that you can guess but it is wise to check with the lender. This is because it is not always easy to calculate or we might forget to add on some of the fees or all of the interest. It is best to make sure that you get it completely right.
See if You Have Enough Money to Repay
Once you know how much it will be then you will need to work out if you will have enough money to repay it. You will need to start by looking at how much money you expect to be coming in when you get paid. Be sure to make sure that you allow for any changes in salary you might get. For example, if you have different amounts of pay depending on the length of the month or things like that. Then you should think about whether that will be enough to cover the loan. Do not stop here though, you need to also have enough money to cover all of your other essentials as well. For example, you might need to pay rent or mortgage, have other loan repayments to make, pay utility bills and mobile phone contracts and there will also be food to buy as well. This means that you have a lot of things to consider and you need to add up all of those costs to see if you have enough to cover it. Even if you do, it can be a good idea to have a plan for raising a bit more just in case. If you do not have enough, then you will definitely need a plan for raising a bit more.
One way that you can get some extra money is to reduce spending on other things. To start with, it can be a good idea to not buy anything that isn’t essential. So, cut out all of those treats so that you will be able to use the money for essential things. It can be hard to do this, but it will only need to happen until you sort out your finances so just think of it as delaying buying things rather than depriving yourself. You also could benefit form comparing prices on the things that you are buying> Think about whether you can switch to cheaper brands, retailers, insurers, providers etc and spend less on what you are paying for so that you can reduce what you are spending even more. Even if changes you make will take too long to have an impact immediately, it can be worth doing as it might mean that you will then have less need to borrow in the future.
It can be a good idea to also think about whether you can earn a bit extra. This could be as simple as doing a few extra hours in your job or you might be able to take on a second job or some freelance or temp work just to get a bit extra to help out. You might also be able to sell things you own and no longer need to raise a lump sum of money or perhaps monetise your hobby somehow. It is good to have a good think about the possible opportunities that are available to you and you might find that you can raise quite a bit of extra cash.