If you have loans a significant amount of your monthly paycheck could be going towards debt bills. In fact, if you have enough debt you could have trouble getting from one paycheck to the next while keeping up with all these bills. If you’re falling behind, payday loans may be a tempting way to pay your bills on time. Before you borrow money to pay for money borrowed, though, consider.
Before you start borrowing to pay for money you’ve already borrowed, make sure that you have a good repayment plan in place, so you’ll just dig yourself deeper and deeper in debt. Consider consolidating your loans, seeking lower cost loans, or doing anything else to make your payments more affordable. Do not take out a payday loan until you take this step, or you’ll be applying a band-aid solution to a serious problem.
If you are faced with a choice between a payday loan and being late on existing loans, check out the penalties. If you wait until your next paycheck to pay your debt bills, how much interest and penalties will you accrue? Compare this to the cost of a payday loan. If the payday loan is less expensive, consider the loan – but only as a one-time solution. Then work very hard to find long-term solutions for making your bills affordable.