Is January a Good Month for a Payday Loan?

Getting a payday loan, just like getting any other loan is a big decision to make. It is important to make sure that it is the right time for you to take out a loan and it may be that January is a good time for some people, but it is often a tricky month. This means that perhaps you should think even harder as to whether taking a payday loan at this time is a good idea.

Problems with January

This is because a lot of people overspend in December and they may also get paid early in December as well. This makes the wait until the January pay packet a very long one and if you have to repay a payday loan with some of that money then it can mean that you will struggle to manage on less money. However, February is a short month and so it may not be too long until you get paid afterwards.

If we pay for Christmas gifts on a credit card then it may be that we will need to repay it just after we are paid in January as well. We will find that the credit card bill is likely to be higher than our normal credit card bill and so with less money anyway and a payday loan to repay it could make things extremely tight.

Problems with loans

There are general problems with loans that are worth being aware of which will not be affected by the time of year. Loans have to be repaid and this will mean that you will be short of money until it is repaid in full. This can be a problem if you already struggle to manage. Coping with having less money like this could be a big problem with stress and worry making things worse. It may mean that you find it hard to pay your other bills.

It is therefore really important to make sure that you are able to cope if you have repayments to make. In order to do this it is important to look at how much money you have coming in and going out in a typical month. Then you can see how much you typically have left over. This will allow you to see whether you will have enough to cover the cost of the repayments or not. If not, then you will be able to take a look at what you normally buy and think about where you might be able to cut down so that you can afford the repayments.

Problems with payday loans

Payday loans have to be repaid in one lump sum normally. This means that you have to find the money all at once, compared with other loans where you can spread the cost. This means that you may have to pay out a lot more and try to manage with having a big chunk of money missing from your usual income.

As long as you are aware of this and know exactly how much you will be repaying and when this should help you. You will be able to plan better for that repayment and hopefully come up with ideas as to how you will manage it.

Ways to cope with the costs of a loan

All loans will cost money and you need to be prepared for this when you take one out. Make sure that you know exactly how much you will be paying out and when so that you can ensure that you have enough money to cover it and all of your other expenses. It may mean that you will need to reduce your spending on other things. Try to keep enough money to pay for the essentials and cut down what you are paying out for luxury items. This will enable you to have money left over to pay the loan when it is due. It may be necessary for you to look for alternative ways to earn money so that you have some extra. This could be taking on some casual work, finding some online work or selling things that you own so that you can get some extra money.

It can be worth being really sure that you want to take the loan out in the first place. If you think about how hard it could be to cope with the repayment, particularly in January it might make you think twice about getting one. There is nothing wrong with getting one as long as you know that you will be able to cope with it. Do also make sure that you compare different loans so that you are sure that you are getting the one that offers you the best value for money. You will find that there are quite a few options and so you should be able to find one that suits your needs.

How to Reduce your Borrowing Stress

For some people borrowing money can be a big cause of stress. However, there are ways that you can reduce that stress and make things easier for yourself.

Think hard before you borrow

In order to avoid the stress of a loan then it is wise to think really hard before you take one out. Make sire that you consider the potential stress that you might have as a result of taking it out. This could make you think about whether it is worth taking it out or not. You might think that it is still worth it or you may not have any choice but to borrow money in order to afford what you need. If you can choose how much you borrow then try to borrow as little as possible and set a repayment plan to repay it as quickly as possible within your budget and this should help to keep the stress to a minimum.

Try to repay as much as you can

It is good to find out whether your loan allows you to overpay. You may find that there are loans where you have flexible repayments so you can pay back more than your set amount. This will mean that you can repay the loan more quickly if you have any spare cash and this should reduce the stress that you have from being in debt. However, you do need to be careful of doing this as some lenders will charge for overpaying. This charge could be so high that you end up paying more back than you would if you just stuck to the set repayments. So check with your lender and make sure that if there is something to pay, that it is worth paying it.

Negotiate easier repayments

If the terms of your loan is because the repayments are too expensive then it might be possible to ask your lender to reduce them. They might agree to allow you to repay the loan over a longer period of time and reduce the amount that you are repaying each month. It is always worth asking as lenders can be flexible, especially if it means that you are more likely to make the repayments. They will charge more for this as you will be paying interest on the money for longer, but it could be worth it if you feel less stressed and can manage your money more easily.

Swap to a cheaper loan

It might be possible for you to swap to a cheaper loan. This could mean that you will be able to pay it back more quickly or that you will be able to afford the repayments more easily. Either of these should help to reduce your stress levels with regards to your loan. Do make sure though that you will not be charged a lot for doing this. Some lenders will charge customers that change to another lender and so you will need to check if your lender does this. You may also have some charges for setting up with a new lender, such as admin costs. So, you need to check with your lender and the one that you are swapping to in order to find out. If there are charges, it might still be cheaper to swap than remain with your current one, it all depends on the charges and how much less you will repay overall depending on the interest rate.

Sometimes loans can be really useful; helping us out of a tight spot or allowing us to buy things we would not otherwise be able to afford. However, some people get stressed at the thought of having a loan and it is important to try to keep things in perspective. As long as you are able to manage the repayments then you should not really have a need to get stressed. However, if you are struggling then stress is a common response. Make sure that you do what you can to make sure that you can manage the repayments and also try to repay the loan as soon as possible. This will eliminate the stress more quickly and it should make the loan cheaper for you as well. If you think that a loan will stress you when you are choosing one; then consider whether it would be better just to avoid getting one altogether. This is not always possible and so if you have to get one then choose wisely to make sure that you get a loan which you can afford to repay and will not be around for too long. By comparing loans you should be able to find out the information you need to pick the right loan for you which will hopefully keep your stress down.