The lending industry had its fair share of payday loan horror stories. You probably heard about outrageous interest rates which trapped borrowers into a life of misery. Suicide tales about payday loans are also common, yet only half of them are real. Despite these scary things about payday loans, you should look on the bright side. A payday loan will work for you if you have a great sense of financial discipline.
Do you want to know how payday loans can make you miserable? Check out these habits that must be avoided:
Buying Unnecessary Stuff
If you like to buy unnecessary stuff, then don’t get a payday loan. There’s a big chance that you’ll just spend it to fuel your materialism. Many borrowers around the world use their loans to buy the things they want, not the things they actually need. Always remember that material things should be purchased with cash – not loans, credit, or anything that can set you back financially. Also, you must assess if you actually need the thing (i.e. gadgets and appliances). Maybe you can improvise or find other cheaper alternatives.
Borrowers love to impress people. Upon getting their payday loans, they shower their friends and relatives with gifts. Shopping and vacation sprees are also common, and everyone has a great time. But after the wave of pleasure, the debt kicks in. You’ll soon realize that impressing people caused you to default on monthly payments. You may turn to your friends and relatives, but don’t expect that they’d help you. Avoid impressing people – it’s good for your health and sanity. Instead, you should impress lenders!
Poor Repayment Attitude
Repaying your loan is one of your main responsibilities as a borrower. If you can’t repay on time, it simply means that your budget plan has gone awry. You’re also not in a better state if you only repay a fraction of the monthly due. Change your repayment attitude and disposition if you want to maximize the full value of your payday loan, or any other debt tool for that matter.
Avoiding the Lender
If a borrower is about to default, he or she may avoid the moneylender. This is a big blunder! Lenders are experienced with handling these kinds of issues, and they will (almost always) get what is owed. If you have financial troubles, approach the lender meekly. Perhaps you can renegotiate a new term – one that’s flexible enough for your monthly budget. Or the lender may allow reconsolidation of your current debts. Be a responsible borrower and financial planner – you won’t regret the change.
You should get a payday loan, only if you have the means to repay it. If you have monthly income issues, then you should think twice before getting a payday loan. Remember, failure to repay the loan can lead to huge problems such as penalties and collection agents going after you. Once you’ve managed to repay your loan, you’ll have a peace of mind and the lender will even be more proud. Someday, if ever you need emergency money, you can always re-apply for a new loan!