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.