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When to get a Payday Loan

Payday loans get a lot of bad press and many people are every opposed to them. They have been blamed of taking advantage of the most vulnerable people, but there are some people who have found them very useful. If you are considering a loan, then it could be a good option for you, but it is worth making a very careful decision.

Payday loans tend to be very expensive. This means that it is always worth hunting for cheaper alternatives before you sign up. So if you can use an overdraft, credit card, personal loan or borrow from a friend it could be worth trying this first. However, do compare the price, if you have these options as they may not be cheaper. An overdraft can be more expensive than a payday loan if it is unauthorised, so do check. If you need the loan for paying a bill, phone the company first as they may allow you to reduce how much you pay or allow you to have a short break from paying until you get some more money.

If you have a poor credit record then you may have no choice if you want to borrow money than going with a payday loan as they do not run credit checks. Therefore for you, this could be the only option if you are stuck for money. However, it is wise to make sure that it is completely necessary for you to borrow money and that you have no other options as getting a loan can make things even more difficult.

A payday loan has to be paid back in full very quickly. You borrow a relatively small amount and it is expected that you pay it all back, plus the fees when you next get paid. Therefore you need to be sure that you will have enough money to pay it back, when the repayment is needed. If you are not able to pay it all back, then you will be charged fees and these can be really high. They can even accumulate each hour or each day that they remain unpaid. It is therefore wise to only take out a loan if you are completely sure that you will have the available resources to pay it back in full when required.

As with all loans you should not take out a payday loan unless you have thought about it very carefully. You want to make sure that it really is the right option for you as it will be expensive. Think about whether there is an alternative to borrowing and also whether you really need the money or whether you can wait. Payday loans were set up to provide money in emergencies and this is exactly what you should be using them for and so if your situation is not an emergency then it is worth not borrowing the money and waiting. If you are about to be cut off, evicted or have no food then this would be an emergency but if you need to buy something that is not necessary then it is wiser to save up for it.

So if you are looking to get a payday loan it is worth stopping and thinking hard about it first. Consider whether borrowing money really is necessary for you as you may be able to wait and then not pay the cost of a loan. Then think about whether you should use a payday loan or if there is an alternative method of borrowing that you could use that will be cheaper for you. There may be options for you if you have a bad credit score such as Emu.co.uk, but it is worth checking first and looking around at the options. Do not assume you will not get help elsewhere, ask and find out.

Also think carefully about the cost of the loan. You may be able to compare different companies and it is wise to look at their fees. Do not only compare the upfront fees but also the costs if you do not repay on time. It is also worth finding out more about the company and the customer service that they offer. Once you choose a lender and know what your repayment amount will be, make sure that you are confident that you can repay it. Think about your income and whether you will be able to afford to repay it as well as cover your other monthly costs. There is a lot to think about, but it is an important decision as you could find that if you choose the wrong loan or cannot repay it, you will get into deeper financial difficulties. Do not panic about needing money but give it some serious thought as you may otherwise regret the decision that you made.

Should you Lend Money to Other People?

Sometimes we see friends or family members that are struggling for money and we feel that we would like to lend them some money. Or they may even approach and ask to borrow some money from us. Even if it is something that we can afford, it can be awkward because it can cause problems. It may seem that lending money would be a good thing to do, but it may not be.

If you are approached then you may not want to lend money and it is worth thinking hard before you do. Obviously it may cause offence if you refuse but you need to fully consider the consequences of what you are doing and whether lending is actually the kindest thing to do for them. You do not want to cause problems in your relationship with them and lending them money could easily cause this for a number of reasons.

Firstly it could cause problems with other family members or friends. They may expect you to do the same for them and there may be jealousy. Obviously you can do your best to keep it secret, but these sorts of things do have a habit of getting out and it could cause problems. Imagine if another person asked you to lend some money and at that time you did not have the money, this could cause jealousy and you may find that your relationship suffers as a result of it. There may also be a misunderstanding and they may think you have given them the money and they may wonder why they did not get a share.

There may also be problems if they struggle to pay you back. Even if you have an agreement as to how often you will make repayments and how much they will be, there may be problems. It may be that repayments cannot be afforded one month or that the lender suddenly needs some extra money and could do with a higher repayment that month. Both parties could feel guilty and worried and if they talk about the situation and cannot resolve it, it could even cause arguments. This could cause problems between the two and could damage their relationship. The rift could possibly even be permanent and that would not be good if you want to remain close to the people involved.

Once you lend once, there will be an expectation that you will always be able to do it. This could mean that you will be asked a lot and it can put a lot of pressure on you. You may feel obliged to keep doing it and you could even find that you will not have enough money for yourself. It could be very difficult to know when to refuse or to be able to actually do so. If you do say no, they may think badly of you and you are likely to feel guilty, particularly as you managed to do it before. However if you turn them down, but offer to help them in another way, it could be better for both of you.

It can be better for those asking, if you do not lend them money. If you keep letting them have money when they need it, they will not learn to manage on what they have. They will keep spending knowing that they have someone to fall back on that will lend them money if they need extra. Rather than learning how to budget they will just learn how to ask to borrow money. It can be far better to sit down with them and teach them how to be sensible with their money and to make sure that they have enough left so that they do not have to ask to borrow money all of the time. They may not like the idea and may not take you up on your suggestion, but it is unlikely to have such a big impact on your relationship as lending the money could do. Obviously this will depend on the people involved, but it is more likely that if you start lending money, it will cause more problems than it solved.

It may be hard to think that not lending to someone who needs it could be good for them. You may feel that it is cruel and that you should help them, but helping them to not spend so much and to manage their money better can be far more valuable for them. You will also not risk having problems with your relationship because they can’t repay you or your need the money back more quickly than they can afford to repay it. It is never worth falling out with someone over money and lending money to them is probably the biggest cause of falling out, so do not do it.

Where to go for Car Finance

Often when we buy a new car it is too expensive for us to afford to buy it without borrowing some money. Cars are usually thousands of pounds and therefore many of us do not have enough savings to cover the cost of that. Therefore we have to borrow in order to pay for it. Even cheaper cars may be too dear because we have to also cover the other costs of a new car such as tax and insurance and these can sometimes be pretty significant.

There are many options for borrowing to pay for a car, the most obvious being a dealer. If you buy from a dealer then they are likely to offer you a finance deal to help you to pay for it. Make sure that you look carefully at what they are offering you as it may not be that competitive. Some may offer interest free credit and some other finance deals but it is worth asking questions before signing up. Find out if there are any administration fees, upfront costs, charges or anything else that you would have to pay. Also look into what they charge if you miss payments or want to pay the loan off early. As with all loans you should carefully check the terms and conditions before you sign up.

You could go to a bank or building society for a loan alternatively. You may find that they will be cheaper than a car dealer and so it is always worth comparing. Like the dealer, they may want you to use the car as collateral, which means that you will need to be sure that you make the repayments or else they may reclaim the car. There are many lenders to compare in this field and so it could be worth looking at a comparison website to see who might be the cheapest. It is worth remembering that there are other things that you should consider as well as price though, such as reputation and customer service.

Some people may choose to cover the cost with a credit card or overdraft. This could work for smaller value cars or if you have part of the money to put towards it. However, this can be an expensive way to borrow money. If you do not manage to pay it back quickly the fees will really add up and this could make the car purchase really expensive. Calculate how much the fees might be if you borrow this way and you will probably find that it will be better if you get a personal loan rather than borrowing this way.

Some people turn to friends and relatives to borrow money. This can be a cheaper way to borrow and can offer a solution to those people that find it hard to borrow money from anywhere else. There can be problems with borrowing this way though and so it is worth some careful thought. You need to consider that if they then run into financial difficulties they may need the money back, they may expect you to repay it quickly and you may not be able to or there could be other problems. If you do not have a clear written contract then you could disagree and fall out over it. It has happened in many families and it is not worth falling out over money like this, especially if there are alternatives that you can choose which won’t cause problems like this.

It would be a lot cheaper to save up for the vehicle rather than borrowing the money to pay for it. If you can wait a while or if you have some savings, then it can be wise to do this instead of borrowing. You may like to have savings as they are earning interest, but you will find that the interest charged on the loan will be much higher than the interest you are receiving on the savings so you would be a lot better off using them to pay for the vehicle. You may be able to sell some things to help pay for it as well. Most people try to part exchange a car they have and that can help. But you could also sell things from your home that you no longer need or want and raise some money. If you have a lot of possessions this could add up to a significant chunk of money. It is easy to do this using online auction sites or social media websites. It may take longer before you can buy the car but it will feel good to know that you have not had to borrow money in order to do so and if you have sold a lot of things, you will have cleared some space at the same time.