October 5, 2020

How to Repay Payday Loans

By Jake

There are often people that are concerned about how they repay loans. It is certainly right to be concerned and to ask the question about how to repay them. This is because if you do not repay the loan on time you will face having to pay extra charges and no one wants to have to do that. Therefore, you need to be very aware of what happens with regards to repayments.

  • Direct Debit – the first thing to note is that the lender will set up a direct debit so that the loan gets repaid automatically. This means that you will not have to worry about making sure that you remember to repay it because you will not have to. However, you will need to make sure that the money is available when the payment goes out.
  • Lump Sum– the repayment is one lump sum which will include the amount of money that you have borrowed as well as the interest and any charges. It is great to get it all repaid in one go so that you do not have to worry about the debt for long but you will need to be careful to make sure that you have the money.
  • Payday – the payment will go out on the day that you are paid. This means that you will be very likely to have the money required to pay for it. However, you should not assume that this will be the case, but check it carefully. You need to think about how much you get paid and whether it will be enough. Find out exactly how much the loan will cost and then you will be able to see if you have enough. You also need to consider that you will also have other things that you will need to pay for as well and you will need to ensure that you have enough money for those too.

It can be a good idea to have a plan to make sure that you will have enough money. Even if your calculations show that you have enough, it can be wise to be really careful and have some ideas in place just in case it is not. To start with it can be wise to only spend money on essentials until you are sure that things are normal again in your bank account. So, before you pay the loan, after and at least until you get paid again, keep a tight rein on your spending. Also check the prices of everything that you are buying to make sure that you are not paying out more than necessary. You may also need to think about trying to raise some more money as well. You may find that you will be able to sell some things that you own and no longer need and raise some money this way. You could try using sale groups on social media, for example. You could see whether there is any temp or freelance work available to do which could raise some money. You could also see if there is any work online that you could do which might help you to be able to raise some extra money. There are quite a few options that are available but it is a good idea to make sure that you think through which will work for you so that you can do those things if it is necessary. It is well worth having a plan because you may need to be really quick in acting on it to make sure that you manage if money gets tight.