Having reached thus far, you may be a bit wary of opting for payday loans, especially because of their exorbitant rates of interest. But remember, hard cash is hard to come by and there may be situations where you have no other option but to take a payday loan. All you need to do is to identify the situation, where you need to go in for a payday loan. There are a number of don’ts that you need to follow if you want to save yourself from these loans:
Don’t take this loan to impress your date. It is not worth burdening yourself financially for a few hours of fun.
Don’t take it for a shopping spree. Once the shopping fever abates, it will saddle you with things you never required and a loan you could’ve done without.
Don’t use it for sightseeing. You won’t enjoy the excursion, just thinking about the interest amount!
Don’t use it on speculative investments, no matter how hot your tip is. It doesn’t take much for a hot tip to freeze over!
So, what does qualify for these loans? The only thing that justifies a loan of this kind is a medical emergency or an overdue payment for some essential service that you have defaulted upon and are running the risk of having it terminated. Remember, an intimate body massage does not qualify as an essential service!
How much is enough
Here too size does matter. But here small is beautiful! Take the least amount of payday loan. And take it only when you have exhausted all the other resources. The steps you can take in this direction are:
Win over the creditor. Play on the emotions of your creditor by telling him or her your sob story. He or she may be moved by your plight and give an extension. Don’t bluff, for things can easily be found out. And don’t repeat this approach. You may reassure your creditor by offering a small part of the outstanding amount.
Use friends and relatives. Yes, even at the cost of your reputation! You won’t be unnecessarily burdening them, since the amount involved is small and they may be able to help you out. This will not only get you an interest-free loan, it will also test the bonds of your mutual fondness!
Bank loans or loans from a regular credit agency. This is another attractive option that you can exercise in raising the capital, if is it is not an urgent requirement. You need to be prepared for a lengthy documentation.
Cash advance on credit card. Almost all credit card agencies extend this facility. It can be availed at comparatively lower interest rates.
By deferring to pay or raising the money in this way you will be able to minimize the loan amount. Go in for a payday loan amount, which you can pay off in one installment and with more than half your paycheck intact. Remember you need money to exist too!