A payday loan can be extremely useful to a lot of people. It can help provide money in an emergency when they have nowhere else to turn. It can pay bills, replace goods and provide food for families. However, it is a loan and therefore needs to be repaid. This means that you need to think about how you will repay the loan. It is best to think about this before you take out the loan, however, if you leave it until afterwards then there is still time to think about it as well.
Consider your usual finances
To start with you need to consider your normal finances. Think about how you normally manage in a typical month. Would you normally have spare money so that you can afford the loan repayment? Find out how much the loan repayment is and look back over your bank account for the last few months and see whether you would normally have enough to cover it. If so, then you should be able to manage the repayment, but you will need to be careful that you do not spend too much and put yourself in danger of not having enough.
You may think that because when you get paid, you will have enough money to cover the loan then that will be fine. However, you need to cover all of your normal monthly bills as well and you need to make sure that you have enough money left to cover the variable monthly costs such as food and transport. Obviously months differ in how much we spend too, so consider whether there will any extras, perhaps if it is someone’s birthday or you are going on holiday or something like this. You may find that because you have spent a big chunk of money at the start of the month to repay the loan, that there will not be enough left in order to cover everything else, so you need to be careful.
As soon as you take out the loan you should start to be careful with your finances. If you see whether you can spend less money and earn more, then by the time you have to repay it you should have enough money to do so and then if you keep going to the next pay day you should be able to get through to the next pay day without borrowing more.
Can you spend less?
It is good to think about whether there are any ways that you can spend less money. Even if you are just making small changes, they will all add up and make some difference. So think about everything that you buy and whether you can spend less money on them or even go without. It can be wise to try to live off the food in your freezer and cupboards, rather than buying fresh, for example. You may have some odd meals, but it will not be for long and it could really help you. You may even discover some exciting new food combinations! Also try not to eat out or have take-aways as these are more expensive than making food for yourself, even if you just make egg or beans of toast it will be a lot cheaper as well as being more nutritious than most take away meals.
Then think about other things that you spend money on. Utilities can be really expensive and if you are metered then you can use less and save money so think about whether turning down your heating might help and be bearable for you and having less baths. It can also be wise to stop buying things which are not necessary. This means not treating yourself to small things, not buying clothes and gifts and things like this. It may feel very hard, but it will only be for a small amount of time and once you have paid back the loan and paid all your bills for the following month then you will be able to start buying things like that again if you have the spare money.
Can you earn more?
It is worth looking for opportunities to earn more money as well. You might be able to take on some extra work or do some overtime. It might be that you will be able to take on an extra job, if there is work available and you have the time. You may find that it is worth contacting some local temping agencies to see if they have any work that you could do. They will often have jobs which just last a few days and this might be enough to help you get some extra money and could possibly fit around any other work that you do. It could be possible to pick up some work online as well as there are lots of smaller jobs available that you might be able to do as well as bigger jobs. It ca certainly be worth taking some time investigating this as you could find that just by working a few extra hours you could earn enough money to make the difference between managing to pay the loan back and not. It can be fun doing online work as well. You do need to make sure that the work will pay, but there are a lot of genuine opportunities to earn money, it is just wise to make sure that you choose something that you trust. You can look at reviews on money making websites to find out more about which sites have paid other people, so this can be a good place to start. Also asking friends and family if they have tried earning online can be a good way to find out more. They will only recommend sites that they have made money on and have no bias towards certain sites. This means that their recommendations are probably worth more than any reviews that you can read online.