Payday loans are loans that are short term and granted at a low amount. This type of loan has minimal requirements and does not actually need to review or check your credit score as the full amount is often due within 20 to 30 days upon granting of loan.
When you decide that you need a payday loan, try to check with yourself if this is the right way to go. Payday loans have higher interest rates compared to other loans and higher fees being charged because of its nature of being short term. If you have completely decided that you want a payday loan, here are some questions that can guide you before pushing through with your decision.
- Have you exhausted all means to come up with the money?
Getting a payday loan should always be your last option. Payday lenders are known for charging high fees and apply high interest rates. It has been an industry standard for payday lenders to apply such fees. If you have other sources where you can borrow and come up with the money that applies less interest or friends who don’t charge interest at all, try to check if they can help you first. Always make sure to pay it off as relationships are always more important that staying away from debt.
- Have you tried for a company loan or a credit union loan?
Being connected to a company usually has its perks and benefits. One of the benefits these companies can offer you is being a member of a credit union or having the opportunity to have a company loan. These loans offer lower interest rates and better payment schemes than payday loans.
- Have you considered making a realistic budget?
Sometimes, all we need to do is to check and review our finances. Identifying the expenses and how income can cover them. Often, we find solutions from the simple act of reviewing our expenses. Most people are able to identify that they are spending on something that they can let go like buying coffee every morning when you can just have that office coffee from the pantry.