Imagine that it's the middle of the month and your car suddenly breaks down. You've already budgeted for all the money you received in your last paycheck, and there isn't much wiggle room. When there is no other alternative, many people will opt to look for a short-term loan from a payday lender such as Core Financial Incorporated. However, is this short-term reprieve setting you up for a lifetime of debt? Not really.
Although payday loans are frequently vilified due to their high interest rates, the small amounts borrowed usually mean that for a sensible borrower, the loan can be quickly paid off. The question, therefore, is how can you make it easier for yourself to pay back these loans?
Only Borrow What You Need
Going to a lender so you can finance some frivolous purchase is not a good idea. You'll be accumulating debt for something you don't actually need. The danger here isn't that you won't be able to pay back the loan but that you could form a habit of going to payday lenders when you need to fund purchases that could easily wait until your next paycheck.
You should only borrow from payday lenders when you need the money for something urgent such as a hospital bill or car repairs (assuming the car plays a major role in how you earn your livelihood).
Only Borrow When You Have To
There are certain needs that may seem urgent at the time. However, it's important to ask yourself whether or not something can wait until you receive your next paycheck. Once you are in the habit of only borrowing when you need to borrow, you'll always be keen to discharge any loans as quickly as possible. You'll be willing to make any necessary sacrifices to ensure you rid yourself of the debt burden as quickly as possible.
Pay Back the Loan as Soon as You Can
The secret to getting rid of debt is to pay back what you owe as quickly as possible. If you took a loan with the intention of paying back once you received your paycheck, don't put off the decision just because you can. Delaying the decision to pay back the loan even by a single day means an opportunity for something else to come up that may require the use of that money, and this can be a slippery slope.
Some lenders may even offer discounts if you pay back your loan before the time it's due.Share