There are many ways to manage your personal finances. Depending on your income and credit history, some people may have more options than others. One option is to use payday loans when you have a large or unexpected expense so that you can still make ends meet.
There are more costs associated with payday loans than with credit cards or other types of loans. That’s why payday loans can be useful for people who do not have access to other forms of credit. Payday loans, like any kind of loan, should be managed responsibly so that your financial situation doesn’t become worse.
Here is some advice on how to manage and get the most benefit out of payday loans.
How Payday Loans Work
There are many payday lenders to choose from, so it’s a good idea to do some research and compare their policies before you choose one. One example is Club Money; they offer payday loans from $250 to $1,500. To get a payday loan from Club Money, you need to apply online. If you apply on a business day, your application should be approved within 30 minutes. After that, the money could be in your bank account within a few hours.
To be approved for a payday loan from Club Money, you will need to have a stable income of at least $250 per week and a bank account with at least 90 days of problem free banking.
Responsible Lending and Borrowing
Make sure that any payday lender that you use is reputable and responsible. Each lender will have their own criteria for determining whether a loan application is suitable or not. A payday lender should not approve a loan if the repayments will cause undue financial hardship for the borrower.
For example, Club Money does not approve loans for people who already have multiple payday loans or people who display problem gambling behaviour. Responsible lending and borrowing practices are very important when it comes to payday loans.
Reasons for Using a Payday Loan
There are many ways that payday loans can be very useful for you. People may not always have large amounts of saving or access to other forms of credit, so payday loans can help you out if you suddenly have to make a large, unexpected purchase that can’t wait until your next payday.
Some examples where payday loans could be very helpful include:
- If you need to get your car serviced or repaired
- Replacing an appliance like a washing machine that has broken down
- Car registration fees
- Paying for rent if you are behind
Managing a Payday Loan
It is very important that have enough money in your bank account to cover payday loan repayments when they are direct debited so that you don’t default on a loan. Many payday lenders will charge you extra fees for every day that a repayment is late, and missing repayments may make it harder to get credit in the future.
If you think that you won’t be able to make a repayment by the due date, for example if you are going to receive your pay a day late, you should contact your lender immediately. They may be able to arrange an alternative payment date. Club Money’s policy is not to charge Daily Default Fees if you stay in contact with them.
If you need to get a short term loan quickly, you can apply for a payday loan online and get fast approval.