When it comes to borrowing money that usually means you’re in a sticky financial situation. Whether it is borrowing funds just to keep you a float till your next paycheck or you’ve reached financial hardship, no matter your reason for needing to borrow money, managing those funds are key.
There are many routes you can go when it comes to borrowing money; family, friends, a bank loan or a payday short term lender, the idea of being in debt and owing money is both a financial stress and a financial priority. That’s why being fiscally responsible when it comes to these borrowed dollars is a must. And here at GoDay we understand that times can get financially tough, that’s why we’ve created a list of the top four things you shouldn’t do with your loan.
Do you really need that expensive bag?
Time to play the want vs. need game, especially when it comes down to somebody else’s dime. Remember that everything you’re spending money on during your loan period needs to be paid back eventually. That’s why at GoDay we’re selective in the loans we give, as our loans are to help you get back on track not further away from it. So making financially conscious decisions about your spending is needed. Do you really need that expensive hand bag? Or could those funds go to something else?
Not having a budget
At GoDay, we believe you should already have a budget in place, but if you don’t a budget will help scope out how to pay off existing debts and get you pack on your feet financially. It’s also recommended to incorporate your existing loans as they appear into you budget list to make sure you aren’t missing any payments or opportunities to tackle debt. By not creating a budget you are more likely to miss out on ways to cut back on spending and miss out on key savings opportunities.
Another big no, no when it comes to things you shouldn’t do with your loan, especially if they are bank or payday loans. Missing or avoiding your payments can be detrimental to any future loan you may need and worst of all, can end up affecting your credit score for up to seven years. At GoDay we will always give you full notice and warnings when it comes to your payday loan and payments and always try to help you figure out a solution to manage your repayment, but missing a payment has the same implications as any other bill. This can have a crucial impact on your future relationship with GoDay or your bank. Making payments on time is what helps to build your credit, which is why you don’t want to miss a payment.
Applying for another loan
It is very common for people to have debt in more than one place. A mortgage, student loans, car payments, the list goes on, but we’re talking about taking out more than one loan at a time. It can be very financially stressful to have numerous loans outstanding all while trying to repay them all within the terms that were made while struggling with finances. That is why at GoDay we won’t let you take out another loan till your original loan is paid off. We want you to get back on track financially by tackling one debt at a time.
Do you have any tips on things you shouldn’t do with your loan? Let us know in the comment section below.