Payday Loans – Things to Consider

What to Consider Before Requesting a Payday Loan

Reality check: vet yourself a little before applying for that paycheck loan. Ask yourself why you need the loan. How will you use it, and how will you pay it back? Are you truly in a bind, or would you spend the money on something you merely want, as opposed to need? Medical bills, car repairs, and utility bills – these are real financial problems and payday loans can help. That fancy dress or flat-screen TV? Not so much.

Have a Spending Strategy

OK, so you’ve made a couple of tough decisions and figure that you could still really use the cash now. Now it’s time to consider how best to use the money. What bills can’t wait and which ones can? Maybe sit down with a calculator to figure out what bills would cost more in the long run, considering late fees and interest. While you’ve got that calculator out, figure out how much money you’ll need. Calculate how much it will cost to pay it back, too. Don’t discount late fees or missing payment charges. Be sure that you’ll have the cash to pay all your regular bills as well as your payday loan on the date it’s due.

Plan For Your Financial Future

Payday loans should be considered two ways: a pledge to the lender that you’ll pay the loan back, and a pledge to yourself to spend your money wisely. Hopefully in the future you’ll not only have paid back your payday loans, but you’ll have money in a savings account for unexpected costs in the future. Only with learned discipline and responsible financial decision making will you get there. You alone have the power to make the most of your money.

Try visualizing yourself a few weeks or months in the future. Where would you like to be then? Which bills would give you the greatest peace of mind to pay off? See yourself spending responsibly, and making all of your payments on time – including paying back that payday loan. If you can picture it, you can make it happen.