Whether to get a payday loan can be a difficult thing to
consider whether you have children or not, in fact any financial decision,
whether about borrowing or anything else can be very tricky. Put children into
the mix and it can get even more difficult as you have to ensure that you can
provide everything that they need as well as everything that you need.
Sacrificing things yourself can be a lot easier than depriving your children.
It is a tough decision and there are a few things that you should focus on when
making up your mind.
How much benefit will the loan bring?
It is worth starting with thinking about the benefits that you will get from the loan. Think about what you are going to be using the money for and how it will help you. Consider what would happen if you did not have the money. It is also worth at this stage thinking about whether there are any alternatives. This could be anything from using savings that you have, trying an alternative type of loan or going without the money altogether. Obviously what alternatives are available will depend on your personal situation. It is worth discussing this with someone else as you may not see an alternative that someone else might. Being too close to the situation may mean that you will not be able to spot things that those outside of the situation can.
How much will it cost and is it worth it?
The loan cost will depend on a number of things. Lenders will vary in what they charge and so it is worth comparing their prices so that you can pick one that is more affordable. However, you need to be aware that it is worth making sure that they are offering good value for money and checking how much they charge if you are not able to repay in full when required. To find out how much they will charge, you can look on their website They should have a calculator where you can enter how much you want to borrow and how long for and it will show you how much you will have to repay which will include the charges. It is important to note, like with any loan, if you miss the repayment or cannot repay the full amount then you will have to pay additional charges.
It is worth thinking about the cost of the loan and whether
you think this is giving you good value for money. This will depend on what you
are using it for. If you are buying something, for example, think about whether
you would buy it if the price was as expensive as the cost of the item plus the
loan cost. This will allow you to decide whether you think that it is worth it.
How might it effect or benefit the children?
If the children are your biggest concern then think about how the loan may affect or benefit them. It may be that you are borrowing money to pay for things for them and therefore they will directly benefit. However, it is also important to think about the consequences of the loan. You will be short of money the following month because of making the loan repayment and then having to manage with that much less money. This may not be too difficult for some people but other may find it very hard. Consider how you might manage. If you are not sure then take a look at a few bank statements and look at how much you normally spend and see whether you would have that much available. If not, think about whether you would be able to cut down anywhere so that you can manage. It might mean cutting back in things which benefit the children and this could be difficult for you. It can depend on where you are cutting back though. They may be able to manage without pocket money for a few months or some new clothing but if it means that they miss out on birthday gifts, after school clubs or food then it could be a very different matter. You might feel that not having the loan will make the children suffer but there is a chance that having the loan will as well. This is why it is so important to think about why you want it, whether you will be able to repay it easily and whether you will be able to manage your bills and other expenses in that month once it is repaid. It is not an easy decision and predicting what might happen as a result of getting a loan is not easy either. However, if you spend time thinking it all through then you should have a better idea of whether it is a good idea or not.
Some people get very worried about whether they will be able
to repay a payday loan if they get one. This is understandable as many of us
hear stories about people that struggle with loan repayments and payday loans
seem to get particularly bad press about this. There is always a risk that the
repayment will be too difficult to pay, but many people do mange to do it. It
is worth thinking more about whether there is a risk of you not being able to
repay rather than worrying about what has happened to others. Having a good
understanding of how the repayment works and considering if it is something you
can cope with, is therefore really important.
How do payday loan repayments work?
When you take out a payday loan you will normally be expected to repay everything you borrow plus the charges in one lump sum. In order to make this easy to manage you will have a direct debit set up on the day that you are paid. Then you should have enough money in your account to cover the cost of the loan repayment. If there is a risk that your pay may arrive late then try to schedule the direct debit on a day that you are sure the money will be there. Then you reduce the risk of being charged for a late payment, which can be very expensive.
Would I manage the repayment?
It is worth thinking about whether you will be able to manage the repayment on the loan. You should be able to find a calculator on the lenders website where you will be able to find this out. You will be able to see how much you will repay in full and this will include the amount you have borrowed plus the charges you will have to pay. Then you will be able to take some time to work out of you could afford this. By looking back at previous bank statements you will be able to see whether you would normally have enough money to afford this repayment and cover the cost of all of your other needs as well. It is worth thinking about whether you are likely to have any extra expenses that you will have to manage on top in that particular month. Perhaps a birthday, a quarterly bill or something like that which could have a significant impact on your ability to manage. It might be that you will be able to cut down in some areas so that you have enough money left to pay everything. This will depend on how many luxury items you normally buy and whether there are items that you are prepared to go without for a while so that you can afford the loan. Some people are more easily able to cut back than others and it is worth taking a look through your bank statement at the things that you normally buy and the places that you spend money to see whether you will be able to easily cut down anywhere.
What happens if I cannot manage?
If you cannot manage then things can get expensive. If you miss a loan repayment or cannot afford to make a full repayment then there will be significant charges and these can soon add up. This can put pressure on you and make the situation stressful so it is good to avoid this if you can. If you cover the loan but do not have enough money left to cover the rest of your bills then this can be equally stressful. You may be able to make arrangements with some companies to repay them less for a while, but they may charge you for letting you do this. You may be able to cut down your spending in other areas that could help you to manage as well. If you do find it impossible then you may have to get another loan. This can be a really tricky situation to get into as you may find that you start having to get loans frequently as your expenses will rise due to the loan costs.
So, make sure that you are really confident that you will be
able to repay the loan when you need to. This will make a huge difference to
the cost as well as the stress of the loan. It can be a really good idea to
work out how you will manage financially once the loan is paid as well.
Consider where you might be able to cut down so that it is easier to manage. It
is wise to cut down anyway if you can, even if you think that you will be able
to manage. Then you will be prepared just in case there is a problem.