Much of North America is under a deep freeze, with snow continuing to pile on. Old Man Winter is exacting revenge for a pretty mild winter these last couple of years. It is unbearable to say the least – how many more days until spring?
When the temperature dips below zero and snow creates tumultuous conditions, accidents can happen. For someone who owns a vehicle and is living paycheque to paycheque, this is a worst-case scenario that must never happen. Unfortunately, you get into a fender bender, and your wheel gets damaged, which will require some of your limited funds to remedy immediately.
Should you fail to maintain an emergency savings, or you don’t have enough loonies and toonies in your piggy bank, there is a solution other than using plastic: payday loans.
Payday loans can provide you with short-term relief. This can offer you the reprieve that you most desperately demand. That is, as long as you pay back the money within the allotted period to avoid the unnecessary headache.
Here are five tips for paying back your payday loans without difficulty:
1. Only Borrow What You Need
A common mistake that so many cash-strapped consumers make is that they borrow more than what they need. If a payday loan provider offers you $750 instead of the $500 you need, do not concede to your Mephistophelean nature: just take the $500. Otherwise, you risk getting yourself into pecuniary troubles, whether it is spending an extra $250 or being unable to repay the $750 within 30 or 60 days.
When you only take what you need, you’re better off financially.
2. Comb Through the Fine Print
Sometimes, the very best of us ask the question: are our financial documents in Latin or Greek?
Indeed, it can seem like it most of the time. That said, it is still imperative to read through the paperwork, comb through the fine print, and ensure that you fully comprehend the terms of agreement. Remember, you don’t want to trap yourself in a perpetual debt cycle because you refrained from reading paragraph two, section three!
3. Set a Reminder for Due Date
Not everyone has an impeccable memory, which is why you must establish a reminder for when your payday loan is due. You could mark it down on your calendar, set a note on your smartphone, or, you know, have notes scattered around your home and office.
We tend to think that options one and two are the preferable courses of action.
4. Put Money Aside for Repayment
Let’s say that you borrowed $500, the total amount you must repay is $600, and you will have 60 days to pay back the short-term loan. Rather than scrambling at the last minute trying to gather the money to avoid penalties and additional interest charges, you should set aside money now.
One of the simplest measures to employ is to set aside $100 every week or two, and then find the rest from your paycheque.
5. Temporarily Ditch the Plastic
Let’s be honest: your plastic has gotten you into a lot of trouble over the years, especially around the holiday season. To garner instant gratification and to receive a satisfying dopamine hit, you continually take out your credit card to tap, swipe, or insert.
Do you know what you can do for the next pay period, 30 days, or 60 days? Put it on ice.
To make sure that you have enough money for the payday loan business, you should refrain from utilizing your Visa, MasterCard, American Express, or Capital One credit card(s). By doing this, you will have solace and contentment, which means not a single restless night.
Despite the negative reports emanating from the media surrounding these financial products, payday loans proffer you a life raft when you seem to be sinking. Indeed, there is always a fire to put out: your car breaks down, your oven needs to be repaired, your refrigerator has to be replaced, and your tooth is bothering you.
Can’t we ever have a time where we don’t need to spend money? Impossible!
That said, you will need to be a bit fiscally prudent over the next little while until your payday loan is paid off in its entirety.