6 Common Mistakes to Avoid When Getting a Quick Payday Loan
When getting a quick payday loan, many people make the following six mistakes:
- Estimating whether you can repay it
- Using a payday loan to repay another loan or buy unnecessary items
- Borrowing too much money
- Using payday loans too often
- Failing to research
- Failing to read the fine print
In the next sections, we will delve into each mistake in more detail.
6 Common Mistakes When Getting a Quick Payday Loan
1. Estimating Whether You Can Repay It
Estimating whether you can afford to repay the loan is a huge, but unfortunately common, mistake. You shouldn't be guessing. Instead, spend time calculating whether it fits comfortably into your budget.
You typically need to pay them back when your next paycheck rolls in. So, find out the value of your next payslip, minus all your bills and food costs, and consider your leftover money. If you have enough to pay off the loan, you won't need to worry about taking out a payday loan.
2. Using a Payday Loan to Repay Another Loan or Buy Unnecessary Items
Sometimes, people are unable to repay another loan. So, to avoid defaulting, they take out a payday loan to cover the costs. Unfortunately, this puts them into a seemingly never-ending debt cycle.Alternatively, they take out payday loans to buy frivolous items like the latest game console or unnecessary clothing.
Don't let that be you.
Payday loans are meant to be used for crises and crises only. For instance:
- Funding unforeseen or unexpectedly high medical bills
- Paying for urgent travel costs
- Funding necessary home or auto repairs
- Paying for overdue or high utility bills
Essentially, if your situation would worsen if you left it unpaid any longer, a quick payday loan is an option.
3. Borrowing Too Much Money
You should only get a quick payday loan for the amount you require. Otherwise, you're paying off an amount you never needed in the first place.
Figure out how much it will cost to fix your emergency and request that amount. That way, you'll decrease your repayment amount and have a much better chance of payday loan approval.
4. Using Payday Loans Too Often
Payday loans are a last-resort option. Even though they're a fast way to get money, don't buy into the typical mindset of "that means I can shop more often." Use them wisely and only to supplement one-off emergencies.
If you realize you're relying on payday loans almost every month to pay for necessities, it's time to seek long-term financial help elsewhere.
5. Failing to Research
It's tempting to choose the first lender you find. But that isn't necessarily the best way to go. To discover whether they're the lender for you, it's worth comparing the terms with other providers in your area.
There are seemingly limitless payday lenders available. The only way to find your best option is to research thoroughly. Never rush entering a financial obligation.
6. Failing to Read the Fine Print
Granted, reading the fine print is never enjoyable. But that doesn't mean you should omit the practice. Once you've chosen a lender, you must spend time reading through the fine print — nine times out of ten, it's where the most crucial information lies.
How to Get a Quick Payday Loan from Carolina Payday Loans, Inc.
Once you've made sure you aren't falling into any of the common traps listed above, you can get a quick payday loan from us by following the steps below:
- Submit our quick-cash online form with your details.
- One of our loan representatives will give you a call once they receive the form. They'll tell you about the required items (government-issued photo ID, blank check from your active checking account, most recent pay stub) and process.
- Head to your nearest Carolina Payday Loans, Inc. store with the required items.
- When you arrive, one of our associates evaluates your documents to decide the amount you qualify for.
- The loan representative helps you through the final paperwork.
- You receive the money you need on the same or very next bank working day.
Submit Your Quick Payday Loan Inquiry Today!
From failing to read the fine print to borrowing too much money. From using quick payday loans too often to estimating whether you can repay them. We've covered many common mistakes here to ensure you never fall into any traps.
If a payday loan is right for your situation, start the straightforward process by filling out the simple form found on this website. One of our team members will be happy to guide you through everything.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.