What not to do with a payday loan? Don’t go shopping for items you don’t even need! That is a great example of what not to do when you get a low-cost payday loan. Even still, people do. If an individual has the income to support the payoff, I guess it is not a horrible idea. Probably most people do not, and that is just a bad financial decision.
Do I Take Out a Payday Loan?
Today’s economy is in a crisis, yet people continue spending. Many people right now are getting government financial assistance. Some are getting stimulus checks, and then some people are filing for unemployment insurance. Earlier on, these “unemployed” were receiving an extra $600 per week on top of the unemployment benefit. Most people who look to payday loan lenders for financial help are not looking to head out shopping. There are unexpected bills that need to be paid to keep the household running. As with any budget, the hard questions of, “Do I want it?” or “Do I need it?” will help to limit needless spending. “Can I afford it?” is another important question to ask yourself. Getting a fast loan to cover the cost of something which you cannot afford to pay back, is not affording the item. If you have to borrow money or use a credit card to make the purchase, you cannot afford the item.
More Questions That Need to Be Answered
Challenging questions can continue, especially for those who love to shop and do it often. Yesterday was Amazon Day, a shopper could start taking advantage of this by Christmas shopping to save money. Here are some questions to ponder:
- “Do I already own something similar that could work in its place?”
- “Could I wait for this item until it goes on sale or until I can save enough to purchase it without help?”
- “Do I really need it right now?”
- “Is there a cheaper substitute I can find elsewhere?”
- “Will I regret buying it after I get home?”
- Is the savings of this sale significant enough to get it now?
Whether or not you need a low-cost payday loan or not, excessive shopping can ruin any person’s budget.
Word of Financial Advice
Practice a little patience. Leave the item on the shelf as you walk around the store, asking yourself the telltale questions. Impulsive purchasing will cause problems. If you still want that item a week later and continue to feel as strongly about it as you do, chances are you will end up getting it. Maybe by then, there will be a sale, or you might have received your next paycheck so there is no need to borrow money. If you hold off a bit longer, you may be able to save up enough to cover the costs without having to jeopardize other payments. Yesterday on Amazon Day, I asked my husband if I could get a soundbar for our TV. He said that it would be ok. What? He mentioned that I had wanted one since last year, so he approved my purchase. I saved some money while I waited (a long time too!)
A Payday Loan Does Not Guarantee Affordability
There are good reasons why someone should apply for a low-cost online payday loan. There are many more reasons why someone should not apply for one. Getting help for your finances is a serious matter, and responsible lenders will not just lend to anyone. The last thing the company wants is for an individual to destroy future funding for the cost of a short-term loan. Yes, the rates are higher than regular loans, but the risk involved for loaning without credit checks is part of the compromise. A person with bad credit can get financial help, but at a cost. The cost helps offset the risk of the company. Responsible payday loan lenders deny applications that do not fulfill qualification status.