Payday loans can be exceptionally helpful when faced with unexpected expenses. In spite of their fearsome reputation, they are also perfectly safe – as long as you ensure you can repay the amount you borrowed (plus any interest accrued over the duration of your loan) on time.
The only way short term loans like this can lead you into increasing debt is if you cannot afford to make your repayment on time. Here are a few ways of making sure you have the ability to repay your loan by the agreed date.
Only borrow what you can afford to pay back
The majority of lenders will take the necessary precautions to ensure they do not lend to people who are unlikely to meet their repayment schedule. It is, however, also necessary for you to make sure that you can repay your loan by working out exactly how much money you need (and not borrowing a penny more), as well as making sure you have the means to repay your loan before taking it out.
Plan a sensible budget
Having to repay a short term loan the moment your next lot of wages come through will obviously leave you with less money to play with for the rest of the month. To prevent having to take out another loan at the end of this month, cater for this by working out a strict budget and cutting out any unnecessary expenses like, for example:
- Paying for coffee/ lunch at work (take a flask and a pre-packed lunch instead)
- Having nights out
- Ordering takeaways or buying pre-packed meals (home cooked meals are not only cheaper, they are also healthier than fast food)
You can also make significant savings by:
- Shopping around for cheaper stores/ supermarkets
- Writing a shopping list (and sticking to it)
- Using coupons, store discounts, and so on as much as possible
Purchasing store brands, rather than ‘big name’ brands (there is often very little difference in quality)
Obviously, ‘out of the ordinary’ expenses like purchasing new clothing, planning a holiday, etc. should also be avoided during the month following repayment of a payday loan.
Budget Planning Help
As a responsible lender, Uncle Buck not only ensures you can afford a payday loan before lending you any money, we can also help you plan an effective budget to make repaying your loan manageable. Take a look at our budget planner or have a chat with one of our advisors on Tel.: 01959 543 400* for expert help in planning your budget. (* Calls may be monitored and/or recorded for security and/or training purposes. Varying call charges may be applied by phone providers.)
Please Note: Payday loans are subject to a representative ARP of 1269.7%. They are not suitable for long term borrowing and inappropriate for people experiencing continual financial difficulties.