How to pay back your payday loan

Friday, 20/03/2015

Payday loans are a fantastic way to get through to the end of the month when you have had an unexpected expense that you would otherwise not have been able to afford. Payday loans are perfectly safe and can be really helpful as long as you make sure that you are in a position to pay your loan off on the day that you say you will, including interest. People run into trouble with payday loans when they get themselves into a position where they can’t pay it back and thus start to accrue more interest and debt. Here are some ways to make sure you can pay off your loan.

Never borrow more than you can afford

Most payday lenders will be rigorous when it comes to ensuring that they don’t lend to people who won't pay them back. However, it is also up to you to be sure that you will be able to pay back the loan, so you need to work out exactly how much you need and can afford to pay back before you apply, and then do not borrow a penny more.

Work out a budget for the next month

Obviously, if you have borrowed money that you need to pay back when your wages come in, you will have less money for the month. This is absolutely manageable if you make sure that you have put together a strict budget for the rest of the month. All you need to do is steer clear of things like buying coffee at work or having nights out when you don’t need to, and you should easily be able to cut enough out of your budget to pay back the loan.

Payday loans are not suitable for, and would be expensive as, a means of longer term borrowing and are not appropriate if you are in financial difficulty.

Representative 1269.7% APR

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Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk