If you are worried about the cost of Christmas then you may be considering borrowing money to help you through. Even as soon as January we can start worrying about the costs of Christmas, for some people it can be a year long stress. For others they will leave things until the last minute and suddenly find that there is not enough money to pay for all of the gifts, food and decorations. Christmas can be a really expensive time of year and many people do borrow to help themselves through this time. Some may look to a payday loan to help out, but will it be a good choice?
How much you can borrow
A payday lender will usually only lend up to £1,000. This means that you will be restricted to only borrowing this much. This means that you might not have enough money. It obviously depends on how much you want to spend on Christmas. For some people £1,000 would be a lot of money and far more than they need but for others it would just be a very small amount. It is also important to understand that even if payday lenders advertise that they will lend this much, they may not lend this much to everyone. They tend to lend less to first time borrowers and when they have proven that they are capable of repaying they will then let them borrow more money. This means that you will need to think about whether this will be enough money. You may need to contact a series of payday lenders and find out how much they are prepared to lend so that you can decide whether you will be able to borrow enough money for your needs.
How long you can borrow for
It is also important to understand that when you take out a payday loan, you will only normally have the money for a few weeks. You will normally be expected to repay everything that you owe plus the interest on your next payday. This means that you will only get temporary help. This could be enough for some people but there might be others that want to borrow larger amounts of money and will need to repay in instalments to make sure that they can afford those repayments.
If you are considering a payday loan then you need to think carefully about how you will manage that repayment. If you do not repay all or any of the money then you will get additional fees and no one wants hat. Therefore, you should take a careful look at your finances to make sure that you can afford it. It might be that you will be able to reduce your spending in other areas so that you can afford the loan. This Can seem a bit boring, but you will not regret it. If you feel that you will not be able to afford it even if you reduce spending, then you will need to investigate ways to earn more money in order to help. It is also really important to make sure that you have enough money left to cope until you are next paid. January is often a very long month financially as most people have very little money after Christmas. Often paydays are earlier in December as well so you may have to manage for five weeks. Think hard about how you will manage and whether you will manage before taking out the loan.
So whether a payday loan will cover the cost of Christmas will depend on how much money you need. You will need to find out how much you can borrow and how much you need and whether you can get enough. It is also important to understand that the borrowing is very short term and that you will have to quickly repay it. You will need to calculate whether this is something that you will be able to afford and whether you will be able to afford all of your other expenses as well. There is a lot of working out to do but it is worth it as you will discover whether you will be capable of repaying the loan or not. It is really important to do this as not repaying will be expensive as you will get charged. Try to think of ways that you can reduce your spending and earn more if you think that you will struggle. In fact, it can be wise to do this anyway just in case you have miscalculated and you end up needing more money. You never know what emergencies might come along and it is worth being well prepared for them. You will then be able to take out the loan with confidence knowing that you will be capable of repaying it and you will not have to worry about the date it is due to be repaid and whether you will be able to afford it or afford other bills that will come along afterwards.