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.

If you are looking to borrow some money you will soon realise that there are many different kinds of loan. It can be rather overwhelming trying to compare them all and to work out which one will be the best for your needs. There may be traditional loans that you understand as you have come across them before. However, some of the newer ones, such as payday loans, you may not have a full understanding of. It is worth making sure that you do know what makes it different to other loans as this will help you to decide whether it is one that you should consider or whether it will not fulfil your needs. There are a few main differences which it is worth getting a grasp of:

  • No credit check – most lenders will do a credit check and will only lend to those that have a good credit record. All lenders have different criteria for how they judge borrowers though, so it is not always easy to tell whether you have a good credit record or not. This could mean that you might be worried about being turned down for a loan because you do not have a credit record that is good enough for that particular lender. With a payday loan there is no need to worry about this. There is no credit check and so you will never be turned down because of what that credit record says and therefore you will not have to worry about it at all.
  • Arrange quickly – a payday loan can be very quick to arrange compared to other loans. You might even have the money within a few hours in your bank account ready to use. This is significantly quicker than many other types of borrowing. If you need the money really quickly then this could be an advantage of this type of loan that will be really important to you. It is wise to compare the payday lenders though on this. You may find that some will be able to get the money to you a lot quicker than others. Therefore, make sure that you check as if speed is really important you will want to pick the quickest one. You do need to bear in mind though that you will need to send them the required documents quickly and give them all of the information that they need before they will be able to process the loan.
  • Borrow small amounts – with many loans you can only borrow in excess of £1,000. This can sometime mean that you are borrowing a lot more than you really need. This can only be costly but it can be a burden. It can mean that you are repaying the loan over a long time as well. You might prefer the fact that with a payday loan you only borrow small amounts. This means that you will not need to borrow extra and therefore you will not take so long to repay it. You will also not have to pay extra interest for having money that you did not need.
  • Repay quickly – with a payday loan you will need to repay very quickly. You pay back the loan on the day that you get paid. This means that you should have plenty of money available to repay it. It also means that you only stay in debt for a few weeks. If you dislike the idea of being in debt then this is ideal as you will not be in debt for very long. It is also good if you worry about having to make lots of regular repayments on a loan. You will just make the one repayment and the loan will be gone.

You can see that it has some features which are different to those that you get with more traditional types of loan. This could mean that it will be more suitable for you than other types of loan that you could choose from. It is therefore worth thinking about what you want and need for a loan. You will then be able to look at the main features of a payday loan and work out whether it will be the right loan for you or whether it might be that there is a different type of loan that will work out better. You may find that there is not a loan which completely matches your requirements, but by having an understanding of the main features of all types of loan you will be able to pick one more easily and then be sure that you have the one that suits you the best. Once you have done this you will be in a position to compare lenders and find the loan which offers you the best value for money.