If you have debts, then you may be looking for solutions to help you to get out of debt. It can be tricky knowing exactly what you can do. If you owe money to lots of people, for example, there might be some that you would like to pay off with urgency. Or perhaps you would just like to find a way to pay off certain loans quickly. You might even want a push to motivate you to prioritise repaying the loans because perhaps you just tend to use the money to buy other things instead. It is not always easy to see what the best option might be. You may even perhaps be considering getting a payday loan to help you.
Using a payday loan to force you to repay
It might be the case that you are hoping that a guaranteed payday loan might help you to be forced to repay your debt. This might seem odd but due to the way that payday loans work it might help you. A payday loan has to be repaid within a few weeks. You will have a direct debit set up to repay the whole of the loan on the day that you get paid. This means that you will have to repay it and you will have the money available to do so. If you have a debt that you keep putting off paying back, perhaps a credit card or overdraft, where repayments are flexible then this could help you. If you take out the loan and immediately repay the other debt with it, then you will be forced to repay the payday loan when you next get paid and you will then be completely free of that debt. You will need to make sure that you definitely use the money form the payday loan to pay off the debt and that you are confident that you will have enough money to repay the loan when you need to.
Using a payday loan to pay off expensive debt
If you have an outstanding debt that is more expensive than the cost of a payday loan, then it might make sense to repay that expensive debt with a payday loan. Then you will have a cheaper debt to then repay. You will need to repay the payday loan really quickly though but it could mean that you will be soon free of debt. It is really important in this case again though, to ensure that you are confident that you will be able to repay the payday loan. This is because if you do not, you will get extra charges and you could end up paying out more than you would if you had just kept the loan repayment as it was set up before.
Using a payday loan make repayments you cannot afford
If you are in debt and need to make repayments that you cannot afford then you might consider using a payday loan to help you. This can be tricky because you will need to repay the payday loan within a few weeks and you might find yourself in the same situation again. It is better to find other ways to get the money such as selling things that you own, buying less or cheaper things or finding ways to earn more. If this is not possible in the short term then a loan could be a potential short-term solution. It will be necessary to work out the costs of using the payday loan and not using it. If you miss the repayment on the main loan, then this will cost you money but there will also be costs associated with the payday loan so you need to calculate which of those costs you think will be the highest so that you can make the right decision.
It is not normally thought that getting a loan could help you out of debt. However, there are some circumstances where it could help you. You will need to think very carefully though about whether it is worth the risk of trying this. Calculate the costs and make sure that you are totally confident that you will save money in the long run and that you will be able to afford to repay the payday loan when it is required. Make sure that this is not a decision that you rush into. You will need to be careful to do all of the calculations and also to make sure that you are happy that you will not have any extra expenses up until you have to repay the payday loan so that you will definitely have the money available that you need. You will need to think about this really carefully and it will be important to perhaps even go away do something else and come back to thinking again. Also perhaps consider discussing the prospect with someone else so that you can be completely sure that it is a good idea as they may look at things from a different perspective to you.
There are lots of advantages in having insurance but there are a lot of different ones to choose from which can make it hard knowing which are really worth going for. The cost of insurance could also be a big barrier and you might be looking at a solution so that you can afford it. With some insurance policies you get a significant discount if you pay in a lump sum rather than instalments and that might be something that you might consider as well. You may find though that your only option to afford the insurance is to borrow the money and this is something worth thinking hard about. You need to consider whether you will be able to get a loan as well, to pay the insurance with. If you have a poor credit record, for example, you may not be able to get a traditional loan. You may find that you will need to look at other loan options such as no credit check loans. These can be useful but it is well worth looking into what they are and how they work so that you can decide whether they will be a sensible option for you.
What are no credit check loans?
A no credit check loan is a loan where the lender does not worry about the credit record of the borrower. This means that if you have a poor credit record then these sorts of loans could be some of the only ones that you will be able to use. The types of loans do vary which means that you will be able to choose the one that fits best with your requirements. They can normally all be arranged quickly, which means that if you need the money quickly, then this should not be a problem. The loans also tend to be fairly short term, which means that they will not be around for that long.
Can I use a loan to pay insurance?
It is normally fine to use a loan to pay insurance as long as you are able to get the money on time. With a no credit check loan you will normally be able to get the money quickly, sometimes even the same day, so you should easily get it for when you need it. The money will go into your current account and therefore you will be able to easily access it to be able to pay your insurance premium. You will then be able to pay it using a BACS payment, debit card or a one-off direct debit payment. It should give you enough options that you will be able to pay the money to your insurer as required.
Is it worthwhile using a loan to pay insurance?
Even though it is possible to use a no credit check loan to pay your insurance it is worth asking yourself whether this is a sensible idea. It is best to start by working out whether you really need the insurance. There are some insurances that are a legal requirement, such as car insurance and some that your mortgage company will require you to take out such as life insurance and buildings insurance. However, many of them we choose to take out such as contents insurance, per insurance or health insurance. It is worth working out whether you really think that it is necessary to have this insurance.
If you really are sure, then you will need to examine your different options for paying for it. If you have the money in a savings account then it would be wise t use that. It might be the case that the insurer will offer you the option of ether a cheaply yearly payment of dearer monthly ones. It is worth calculating how much extra you will pay if you take the monthly option and how that will compare to the cost of the loan that you are considering. Work out whether the monthly payment option is cheaper than the loan, as if it is then this will be the best thing to do.
If you feel a loan is the right option then it is really important to find out what the repayments schedule is and whether it is something that you can afford. It is important to take a careful look at your bank statements and see how much money you normally have available to find out whether you will be able to afford the loan repayments. If you cannot afford these repayments you will find that you have to pay an additional fee or charge and this is not ideal. There might be ways that you can cut back your spending though, so that you can make them more affordable and therefore it could be worth looking at this option.