- A payday loan is not something you should take lightly. Keep in mind that in no case will you return the exact amount lent to the bank. And remember, you will also pay interest and commissions. As you see a loan is not a gift, therefore there are things for which you should NOT take out a loan of this type. Discover which ones!
Finance your car purchase
Have you thought about it? Did you know that there are vehicle loans with lower interest rates than a payday loan? If you answered NO to both questions then do not think of asking for a payday loan to buy your new or second car.
For something, banks have loans for each type of need. If you want to buy your new car, it is best to opt for a specialized loan. There is even a competitive offer between banks and concessionaires.
The initial fee
Neither for the initial installment of your car nor for the initial installment of your home is it a good idea to ask for a payday loan. Again the interests will play against you. In addition, the payday loan will be an additional monthly expense to the mortgage or vehicle credit you request. You could seriously unbalance your finances! For an initial fee it will always be better to save.
You love your brother, your friend, your mom, dad, etc. very much. But we are talking about your finances! Unless it is a true emergency and you know that the person for whom you are asking is responsible DO NOT ask for a loan for others. The credit history that will be damaged will be yours if that person for whom you took the credit turns a blind eye to payments.
Pay your debts
As with the case of vehicle loans, there are special loans to pay debts. In fact they are called debt purchase or debt consolidation. If you have many debts and want to free yourself from them this type of loan is better, by far, than a payday loan.
If you thought about taking out a loan for any of these reasons, stop there! You are about to put your economy in trouble. Breathe, meditate, analyze, make a budget, evaluate options and choose the best one.