The modern age has made it easier to get a quick small loan than ever before. At Quickle, we offer short-term loans to people that need money fast. There are certain things you should never do with a small loan otherwise you could land yourself in some pretty needless financial trouble. In this post, we’re pointing out 5 things you should never do with a short-term payday loan. We’ll begin with:
Never take a loan you don’t absolutely need
Payday loans are designed for short-term arrangement where you’ll have to pay back what you owe as soon as you get your next income payment. We try to be as responsible with our loan decisions as possible and therefore always advice borrowers to really think about whether or not they really NEED the money right this instant.
The people we aim to help most are those with urgent costs that really need a specific amount to make ends meet. This type of loan is not suitable for anything other than emergencies. If you can survive perfectly well without an immediate injection of funds, then you shouldn’t be applying for one.
Using the loan to gamble
Some people think that payday loans are a handy source of seed money because the payout is so fast and flexible around your needs. Gambling is not a viable source of income, nor is it a good way to invest any money that sits at your disposal. The risk of losing is far to high and the cost of you losing everything can be substantial. Do yourself a huge favour and ignore anyone that ever tells you they made buckets of profits gambling with a payday loan. It’s simply not worth it.
Saving money is the single safest way to be smart with the income you earn. Cut back on everything you don’t actually need and you’ll be surprised at how much better off you could be every month.
Using the money to buy a holiday
This is a big no-no for two reasons. Firstly, this is definitely not something you need. A holiday is the type of purchase you should be saving up to buy. Goal setting is incredibly powerful when it comes to your finances. Planning ahead and working to budgets makes saving and building up a fund so much easier. Have your sights set on a great trip away? Then use that goal to drive your motivations to cut back, save and manage your money far more carefully.
Using a loan to increase your budget for a car
Seen a car that’s just out of your price range? Using a small loan to buy a car that’s more expensive than you need is not a good idea. You shouldn’t be buying a car if it’s outside of your price range and short-term loans are not suitable for the purchase of assets. The more you borrow, the more you’ll have to pay back, so it’s very unwise to take the maximum amount possible just to buy unnecessary luxuries.
Can’t get to work because your car has stopped working? Then that’s a completely different situation. If you need your car to get to work and earn a living and don’t have the cash to pay for repairs, then a quick small payday loan could be an effective solution.
Missing your repayments
With any kind of short-term loan, the last thing you want to do is miss repayment completely. Make sure you’re applying for an amount that you know you’ll easily be able to cover with your next payment from work. Missing a payment deadline without contacting us is a sure way to land a bigger bill than you initially wanted. Contact us before your deadline day and we may be able rearrange things to salvage the situation without needless consequences.
That’s our five! Keep these pointers in mind as you apply for your payday loan to ensure you don’t run into financial trouble. If you’re in a tight spot and absolutely need cash to get through, payday loans are a fast and flexible option. Looking to buy something cool? Then it’s best to save up and make the purchase when you have the money to do so.5 Things You Should Never Do With A Small Loan Click To Tweet
Read more about small loans here, or in our previous blog post: 4 Things You Should Never Do With A Fast Cash Loan