Let’s face it, it’s quite easy to secure a cash payday loan. All you need is a checking account that has been in existence for at least 4 months, a regular employment providing regular income, and at least 18 years of life tucked under your belt and voila… a cash payday loan is yours to use! This ease of being granted a cash payday loan, however, is susceptible to many perils. As a famous superhero movie said, with great powers come great responsibilities. Since a cash payday loan is quite an empowering option, it must be exercised responsibly. Otherwise, the said cash payday loan can deliver more troubles than benefits for our financial plans.
So how could we use cash payday loans responsibly, you might ask? Here are some suggestions that would help you avoid abusing cash payday loans to ensure a healthy budget for you and your family.
1. Use cash payday loans as a last resort. Just because you want to buy something that your week’s salary cannot afford doesn’t mean you have to consider a cash payday loan. Try to save some money to enable you to purchase the same, instead of applying for a cash payday loan immediately. Patience is always a virtue, and your patience to save up rather than to use a cash payday loan would go a long way to preserving your financial liberty.
2. Realize what you stand to lose with a cash payday loan. A cash payday loan carries with it some onerous interest rates. You will give up some $15 to $30 of your salary for every $100 you would borrow via a cash payday loan. Cumulatively, that’s a lot of hard-earned money you’re throwing away by resorting to a cash payday loan.
3. Realize that a cash payday loan is actually an advance on your next salary, with interests and applicable fees. By keeping this thought, you’d hopefully realize how much a cash payday loan would cripple your budget come the next week.
4. Realize that a cash payday loan has a short maturity date. The maturity date of a cash payday loan is dependent on the issuance of your next salary. You won’t have enough time to fix a depleted budget, since you would have to pay for the cash payday loan almost immediately.
5. If you have no recourse but to apply for a cash payday loan, make sure that you will only borrow the amount that you would need, and nothing more. A cash payday loan would be more manageable if it is kept at a minimum.
The foregoing isn’t meant to turn you away from considering a cash payday loan altogether. They are just reminders on how you could responsibly use, or reuse to use, the option of a cash payday loan so that your credit record would be preserved.