Many people take out payday loans these days and some will have really good experiences when using them but some people will not have such good experiences. This can be down to the way that the loans are dealt with by the borrowers as well as other factors. It is wise to understand what you can do to make sure that you have the very best borrowing experience when you take out a payday loan.
A good place to start is by comparing lenders. There are lots of different lenders available and it can seem rather daunting to decide who to go with. However, they do differ and so it is worth making sure that you choose the one that suits you the best. There will be different in the amount that they cost, for example and that can be really important. You do not want to pay more than necessary. You should find that most payday lenders will have a calculator on their website so you can work out how much you will repay in total. You will just need to put in details of how much you want to borrow and how long for. This will allow you to compare their costs and see which will be the cheapest for you. By using a cheap lender you will be able to repay less and this will be very helpful.
Make sure you can repay
It is really important to make sure that you will be able to repay the loan. You will find that you will need to set up a direct debit so that money goes out of your account on the day that you are paid. This means that you are very likely to have the money available to pay it because your salary will just have gone in. However, you may find that you will still not be guaranteed to have the money available. This could be because you have an overdraft that will be paid off by your salary or because you have other bill payments that go out on that day. You may even just not get paid enough to cover the loan repayment. Therefore, it is really important to check this. Make sure that you look back at your bank statements and check how much money you will have available and then you will be able to work out whether it will be something that you will be able to afford or not. If you cannot afford it then you might be able to find alternative ways that you can, such as thinking of ways to earn a bit more money or ways to delay paying some of the other money that you owe.
Have a contingency plan
Even if you feel confident that you will be able to repay the loan, it can be wise to have a contingency plan. This means that you have a backup just in case you do find that you will not have the money available to repay after all. It is worth thinking about what you might do, even if you do not have to do it. You might, for example, be able to sell some things to make money, ask for an advance on your salary, do some work elsewhere to get a bit extra or things like that. It is worth brainstorming a few ideas so that you can do something if you need to and make sure that you will be able to pay the loan. Not only will this be useful if you need it but it will give you a sense of security going into the loan, knowing you can be really confident that you can repay it.
It is also really important to prioritise repaying the loan over other things. This means that if you are tempted to spend money on things which are not that important, then try to resist doing so. Keep in mind that you have a deadline for repaying this loan and that once it is paid off you will be short for money for a month and so you will need to be extra careful with your money. Hopefully this will enable you to concentrate your spending only on essentials. If you do this you should have a positive borrowing experience. If you do miss the repayment or do not repay in full, then the loan gets more expensive. This is when you get out of control with the loan and you are no longer using it to your advantage. So this is a situation that you want to avoid if you can. Obviously, there will always be some people that do struggle and if this does happen to you, then do everything you can to limit spending and increase earning until it is paid off. It will be tough to do this, but worth it if you can minimise the amount that you are charged and clear the debt as quickly as possible.