Payday Loans – Be Careful

Jul 27, 2013 by

dangers of payday loansThe Dangers Of Payday Loans

Payday loans are designed, as the name suggests, to provide a little financial help to see you through to payday, even with a bad credit history. As such they are SHORT TERM solutions and should not be regarded as anything different to this.

Used correctly a payday loan can be an ideal solution but always make sure you know what you’re committing to and think about the financial risks and future implications to ensure that it’s the right solution for you before you sign up.

Take professional advice and always look at alternatives.

 

The Payday Loans Trap

You must beware of the payday loans trap and avoid at all costs and ensure that you do not form a reliance on this form of lending to see you through each month. Many will see a payday loan as a fast fix to a cash flow problem that’s real and now – sure, they provide a fast solution but don’t forget that this solution, apart from being instant, is just a short term fix that needs to be paid back, in one hit, the next time you are paid and that’s why you must think carefully and consider the future as well as the here and now.

You have a hole in your finances now and see a payday loan as the right solution, application is made, you meet the criteria and cash is transferred in a flash and todays problem is solved. Payday finally comes round and you repay your loan in full and that’s it … or is it? What happens afterwards – are you left with enough money to see you through the month or is the act of repaying the loan going to leave you with the exact same problem again next month. If the answer is no, if you have an increase in income, a bonus in your pay or you are simply bringing something forward that was in the budget for next month anyway then no problems … that’s where a payday loan can help … but if not then at this time next month you’re going to need to top up again and that could mean, yes, you’ve guessed it, another payday loan to see you through but taking out a payday loan next month may then leave you short the following month and what’s the answer to that … the payday loans trap!

Other urgent loans, fast cash loans and emergency cash loans exist so shop around to find the right solution for you.

Think Carefully

Think carefully, be honest with yourself and look at all the payday loans alternatives. If you do need a loan and if it’s right for you then make sure you go for the right one. Perhaps a payday loan is right for you as your financial issue is just a one off short term problem, if not then maybe an instalment loan would be better – although interest rates may be higher it could work out significantly cheaper than relying on a payday loan each month, or perhaps a personal loan that can be spread over a greater period still, of perhaps a flexible overdraft facility from your bank (it’s always worth talking to them). Then again, always think “do I NEED to borrow at all”, there may be alternative solutions without the need for credit.

More Info: Doorstep Loans For Bad Credit

 

Related Posts

Tags

Share This