Borrowing money is not something to be entered into lightly, so judging when you should take the plunge is important. Thankfully, quick payday loans online can offer credit within hours of applying, meaning that if you do need some money in a hurry, it can be available to you. This works to give peace of mind; if an emergency crops up, you should be able to get your hands on some much-needed cash relatively quickly if you need to.
However, although the option is available to you, it doesn’t always mean that it’s the best thing to do. Looking at reputable short term loans lenders only and knowing when to apply for credit can be as much a factor of a successful loan than making the repayments on time – if you apply irresponsibly, then you may find yourself in trouble somewhere down the line.
Non Emergencies: I can’t make my money last the month
If you’re struggling to stretch your money out until your next payday, then credit should not be your first port of call. Many people resort to payday loans in this instance, which can plunge them into a debt spiral which is difficult to get out of. In other words, they take a payday loan to get them to the end of the month, but have to pay it off on their next payday, meaning that they have to borrow again to last until the end of the new month, and so on.
Although there are few restrictions on what a same day loan can be taken for, borrowing a large amount simply for regular living expenses can mean that you never really identify the problem areas in your spending. Before rushing into applying for credit, you should sit down and write out a budget. Note down your total income and list your total expenses. Looking at your bank statements for the past few months should help you to account for everything. From here you should be able to see where your problem areas are, and you should try to adjust your spending accordingly.
If you feel the need to get credit in non-emergency situations then it may be a sign that you’re not managing your finances properly. Always make sure that you can afford the repayments for whatever credit product you choose before applying. Think ahead more than a month or two down the line – will the repayments be just as manageable then? How are the first couple of repayments going to affect your future plans?
Emergencies: My car has broken down
An unreliable vehicle can be one of the most annoying things – especially when it chooses to break down when you need it most. The key to making sure you get it fixed in the most cost-effective and efficient way is, firstly, to keep calm and secondly, to consider your options carefully.
Driving (or towing) your car to the nearest garage in a panic may not mean that you’re going to get the best, or cheapest, repair. If your car has had troubles before, then you may have a good idea about which garage in your area is going to repair it well and charge you fairly, but if not, you may want to ring around a few friends first to get some recommendations. If you know exactly what’s wrong with your car then you could phone ahead and get some quotes first.
If your car is an absolute essential (i.e. it gets you to and from work or you need it to take your children to school) and you have no savings to draw on to get it fixed, then a same day loan may be your best option.
In genuine emergency situations like this, taking out credit to keep life moving forwards is fine, but only if you make sure that you can afford the repayments easily. Once you’ve established this, finding a company who will pay out on the same day could mean that you’re able to get things back to normal within 24 hours.