Category: Payday Loans

Before you take out a loan, it is always a good idea to plan how you are going to repay it. However, even if you have already taken it out, you should be able to make some plans. It is a good idea to start this as soon as possible.

Find Out How Much You Need to Repay

The first step is to be completely clear on how much you need to repay and when. You may know this already but if not. Then your lender will be able to tell you. There may be a calculator on their website to work it out, which might be quicker but asking them is the best way to be completely sure that you have the right information. It is important as you will need to check that you have the money available to pay it.

Check if You Will Have Enough

You should be able to work out whether you will have enough money to pay for the loan by looking back at past bank statements You will be able to see how much you are likely to be paid and what you will need to pay for and calculate what is left. This will allow you to know whether you will have enough. It can be easy to assume that because you are being paid that there will be enough money but this is not a wise approach. It is far better to make sure that you actually do the calculations so you can be completely sure. 

Consider Other Costs

You will also need to consider everything else that you will need to buy. As well as considering your essentials think about whether there might be anything else that you will need to pay for. This means things that you might not normally pay for every month, perhaps yearly bills, MOT, insurance and that sort of thing. Also consider whether you might be buying gifts if there are occasions during that month and things like this. It is a really good idea to be completely thorough here so that you account for everything. It should not make you panic, because you will be able to plan for it in the next stage.

Think of ways to Spend Less

It can be a good idea to think of ways to spend less money. It might that you will be able to buy the things that you usually get at a lower price and that will help you to spend less. You might also be able to buy less, perhaps try to cut down on your luxuries for a bit until you have cleared the loan and feel like your spending is back on track again.

Think of Ways to Earn More

It can also be a good idea to think about ways that you can potentially earn more. You might be able to do some freelance and temp work that will help you. You might be able to sell some things that you own and do not need. You might even be able to work some extra hours in your job to get some extra money. Have a think about different things you could try. Think about the time that you have available as well as the skills that you have and that should help you to be able to focus more. You might be able to find online work as well, if there is nothing else and this might be lowered paid, but could help you enough to be able to allow you to take out the loan with confidence and know that you will be able to pay it off when you need to.

It is a really good idea to make sure that you know what is expected with regards to repaying a loan before you take one out. This is because it is really important to make sure that you repay the loan on time as otherwise you could be fined or face extra charges. No one wants the prospect of paying extra and so the best idea is to make sure that you only take out a loan if you are confident that you will be able to repay it. It is therefore really important to find out exactly how the repayment will work so that you can do the relevant calculations and work out whether a loan is a good idea for you or not.

How to Find Out

You need to find out how the repayment will work on the loan that you have chosen. It is a good idea to look on the lender’s website for this information. It might be clear but if it is not, then contact them and ask. It is so important that you find out and if you have to wait a long time for a reply, then this might tell you something about the lender and make you think about going elsewhere. A lot of payday lenders have a calculator on their website, where you can work out how much you will have to repay. You can enter the amount that you intend to borrow and the date that you will repay it and it will let you know hoe much you have to repay.

What it is Likely to be

It is very likely, that you will be expected to repay everything that you have borrowed and the interest and charges all together. Generally, you will be needed to repay that lump sum on the next day that you get paid. This could be just a few weeks or even a few days after you take out the loan, which means that you will need to find the money really quickly. The interest rate can be pretty high but because you are not borrowing for long, that will help to keep the costs down a bit. There is also a cap on the amount that can be charged on this sort of loan and you cannot be charged more than what you have borrowed. So if you borrow £200 and you do not repay on time and get charged extra fees, these fees plus the interest cannot go above £200, so you will never pay more than double what you borrowed.

How to Tell of you can Repay 

It is much better though, to repay the loan on time and then you will not have to pay any extra fees. Therefore, you will need to be well prepared to make sure that you have the money that is required available. It is a good idea to actually calculate whether you will have enough. You should know how much you need to repay and when, so that is the first step done. However, you will then need to work out how much you will be paid and what other items you will be repaying on the day that you need to repay the loan. We often have bills that are paid on the day we get paid and so you will need to check for those.  If you have too many payments going out, you could find that there will be not money left to repay the loan. You will also need to look at other things that you will need to repay through the month and make sure that you will have enough money left to pay for those as well.