The biggest fear that most people have when taking out any loan is if they cannot mange to cover the repayments. With a payday loan this can be even greater because the repayment is usually just one lump sum and so it can be tricky to find the money. It is worth making sure that you are able to repay it before you take out the loan and here are some tips on doing so:
Find out how much you will pay and when
It is really important to start by finding out exactly how much you will need to repay and when. You will supply the lender with details of when you get paid. If your pay does not appear first thing on the day you are paid then in might be better to give them the day after so that you can be sure that the money is there. If they try to take the money before you get paid then this will be seen as a late repayment and you will be charged a fee.
Ensure your salary minus other direct debit will be enough to pay it
It is so important to look back over previous bank statements to make sure that there would normally be enough money to pay for the online loan once direct debits go out. Also look at the statement for this month to see whether this looks likely this month as well. If your direct debits come out before the loan repayment and there is not enough money left you will be charged a late payment fee. If you think that you will be short of money then you will need to do something drastic and quickly in order to make sure that there will be enough and there are some tips later.
Ensure there will be enough money to cover rest of expenses
It is also important to see whether you will manage until your next pay day once the loan is repaid. It could leave you significantly short and if this is the case you will need to be prepared for this and make some changes so that you can cope financially and do not need to borrow any more money. Take some time to do the calculations so that you can make plans to help you to cope if necessary.
It can be really wise, even if you are confident that you will afford the loan and cope financially afterwards that you reduce your spending. If you can do this from the moment you take out the loan until you have had two pay days, then this should be enough time to make sure that your finances are working normally again. Try to cut out unnecessary items and wait to buy them in a few months’ time. Also check all prices and look for alternatives that are cheaper than what you normally buy if you can. Try to go shopping less often and use up things you already have rather than buying new. All small changes and savings you can make will add up help with your ability to cope financially.
Sell things you do
If you need quite a big chunk of money to help you out then you could look around your home and see whether you will be able to sell anything. If you have items which you no longer need or want then you may be able to sell them to make some extra money. There are plenty of places to sell things, such as table tops and car boot sales, auctions, classifieds and online on social media pages, auction sites or classified sites. You can sell things for a small amount of money or higher amounts depending on their condition and value. There will be costs for selling on many sites and so you may need to make sure that you are confident you can sell them for enough money to make back the costs as well as some extra to put towards your loan costs.
It may be possible for you to earn more money in other ways. Perhaps you might be able to do some temporary work or pick up some extra hours in your current job. You may be able to do some freelancing or online work too. You will need to plan and start this as soon as you can as there is likely to be a delay until when you are paid and you will need to make sure that you get the money on time.
It may seem like there are a lot of complex things to think about but it is worth it. You will be able to be confident that you will be able to repay the loan and not struggle afterwards if you have a good plan in place. It will save you a lot of money compared with either not being able to pay the loan on time or struggling to cover all of your costs once the loan is repaid.