When some people take out a loan they fear that they will have trouble repaying. With a payday loan you have to repay everything that you owe in one lump sum. This can make people even more concerned as they worry how they will manage to find all of that money in one go. However, there are things that you can do to ensure that you will be able to make the repayment on time and in full. It is good to give some thought to how you might cope personally but the general tips below might also help you.
- Only borrow what you can afford – it is really important to start by working out how much you can afford to borrow. By looking back at your previous bank statements, you will be able to see how much money you normally have each month. Look at how much you have to pay out as well. Then you can take the difference and work out how much you are likely to have left which you will be able to use to repay the loan. Make sure that you think about whether there are likely to be any extra expenses in that month that may not have occurred in the other two. Also think about whether your income will be the same.
- Compare lenders and find the cheapest – it is really sensible to make sure that you do not pay more than necessary for your loan. By comparing lenders, you will be able to see how much each one charges. You should then be able to pick the cheapest one. It may be that you feel that other factors are important as well as cost and therefore do not want to pick the cheapest but want to pick the one that will give you the best value for money. You may also want to consider what the lenders charge if you miss a repayment. This could vary quite considerably and if you think that there is a risk that you will not be able to repay the loan in full and on time, then it is wise to look at what they will charge. Obviously you will want to do everything that you can to make sure that you do repay it on time but you need to just be prepared in case you do not and make sure that you will not be charged more than necessary.
- Budget so that you only spend the basics – in order to make sure that you will have enough money to repay the loan it is wise to budget carefully. You will have certain items that you will have to buy no matter what. Make sure that you buy those but do not spend more than you need to. Just buy the basics and wait to buy anything else until the loan is repaid and you are confident that you will stay on track with paying for everything that you need. Start doing this as soon as you make the decision to take out the loan and then you have a much better chance of making sure that you have enough money to repay it.
- Look for opportunities to make or earn more money – it is always a good idea to also take a look for opportunities to make or earn some extra money. If you can do small jobs, pick up some overtime at work. Sell a few things to raise money or anything else then have a go. You will not have to do this for long, but if you can increase your income then you will have a much better chance of being able to repay the loan.
It can feel like quite a hassle but it is worth remembering that the loan will have to be repaid a few weeks after you take it out. This means that it will not be too long until it is fully repaid and therefore you will not have to keep up with your careful spending and looking for extra opportunities to earn money for very long. You may need to continue it during the first month after paying off the loan to make sure that you have enough money to manage afterwards and possibly for a second month as well because you will be shorter of money than usual due to having to make the repayment. However, it should not be too tricky to stick to. It is wise to just keep reminding yourself that it will not be for that long and you will be able to go back to spending more money very soon. You might even find that you learn some techniques that you can continue with in the future that will reduce the chances of you needing another loan in the future.