Payday loans have become extremely popular over the years. Why? Because they are loans that are easy to qualify for and fast to get. This has led to many people getting in trouble with them. It is not hard to get carried away when it comes to payday loans and cash advances. Here are a few Do’s and Don’ts that you should know when looking into this type of loan.

Do
Calculate the least amount that you can borrow to be okay until your next payday. Scrape up all of the cash that you can get and put it towards your emergency and then borrow the absolute minimum. If this means that you are eating peanut butter and jelly for a week, so be it. The less you borrow, the more likely you will be to be able to pay off the loan and still have money left over to live on.

Don’t
Borrow as much money as you can thinking that you need the extra cushion. This will often lead you to not being able to pay back the loan at the end of the term. Then you must take out another loan or extend the one that you have. It becomes an endless cycle of payday loans.

Do
Pay off some of your principal if you find yourself needing to refinance or renew your payday loan. This will at least give you a light at the end of the tunnel and improve your chances of paying off the debt. Plus it reduces loan fees.

Don’t
Renew the full loan if you can not pay it off completely. What makes you think you will be able to pay it off when it is due again. Pay off at least a portion of your principal.

Do
Take out a payday loan if you have to have the money to live and you can not get it anywhere else.

Don’t
Take out a payday loan for non crucial items. These should be used for emergency expenses like car repairs, rent, doctor bills, etc. They should not be used for luxury items like concert tickets or spending money.

Do
Ask friends and families for a loan before committing to a payday loan. Your boss may be able to advance you money from your paycheck.

Don’t
Be too afraid to ask for help that you turn to a payday loan before seeking alternatives.

Do
Take out a payday loan if it is the only choice and you know that you will be able to pay it back.

Don’t
Take out a payday loan hoping blindly that things will work themselves out. You are just adding another creditor to your  debt.

One comment

  1. Freddi says:

    This is a good list, Thanks for the share.

Leave a Reply

Your email address will not be published. Required fields are marked *