Mum’s 3 Rules For Taking a Paycheck Advance

Mum was always quick with advice for things like how to handle money, making sure you never bounced checks, always scrubbed behind your ears, and she was always there to pick you up if you fell on your bum as a child. But now you are facing some kind of financial shortfall and you are seriously considering visiting a payday loan centre to help you through it. But do you really need that? Is it worth the fees that come with it? Can you really pay the loan back on time and not suffer undue hardship in the future?

Mum’s Wisdom

1. Do you really need this money?

Think carefully. There are many things in life that we all want. Niceties that may sometimes cause desire so intense as to seem like a need, but they are, in fact, still wants. Payday loans are really expensive when all is said and done, and the fees you have to pay for taking one out are never worth it for a little instant gratification. Mum has always told you to save to get the things in life that you want, and your true needs in life are probably far fewer than you think.

2. Do you really need this money NOW?

There are other ways of getting money if you just have the patience (and perhaps the credit) to wait for it. There are banks or conventional lenders that can give you the money after a credit check, or if you own your home, perhaps an equity loan can meet your needs. These methods will take longer than a payday loan to be sure, but if you can wait a few extra days to get your hands on the pounds you need, then you should really look into one of these alternative methods rather than a payday loan.

3. Do you have a plan to pay back your loan?

It’s not as simple as writing the payday loan center a check and knowing that it will be cashed at the end of your loan period. You probably live paycheck to paycheck as it is or you wouldn’t need a payday loan, so you need every cent you get paid. How are you going to manage without this payday loan amount taken out of your next check? What will you sacrifice? What will you do without, come the next payday? Plan for this loan well in advance, budget your future paydays and know for sure how you plan to live without this money in the future.

If you can answer ‘yes’ to all three of these questions after some serious reflection, then you pass Mum’s reasons for needing a payday loan. Go ahead, and do it cautiously.