2 Dec 2016
AVOID PAY DAY LENDERS
The trick to avoiding pay day lenders is to design a budget that will consider all ongoing general living expenses (i.e. food, rent, fuel, etc), loan repayments and social expenses (clothes, entertainment, hobbies) along with future savings goals. By being precise, most of life’s surprises can be dealt with. In many cases, insurance (be it health insurance, personal insurance or general insurance) can be taken for what can be considered more major incidents.
Often people take out pay day loans to cover items that should be budgeted. For this reason many banks and online lenders will frown upon statements that show reliance on pay day loans (as the borrower will be seen as higher risk in budgeting for loan repayments). Often the on line loan lenders willing to take on borrowers that rely on pay day loans will charge higher rates and fees, and this can be seen as a never ending circle of debt. For this reason, it is best to prepare a budget and try to stick by it before taking on a loan. To build a better profile it is good practice to prepare for a future loan repayment in advance.