If you want a £100 loan you may just think that it is just not worth worrying about. You might think that it is just a small amount of money and borrowing it will do no harm so may as well just do it. However, with all loans it is wise to think hard about the borrowing decision, deciding whether it is worth borrowing the money. You might be thinking some of the following things:
Representative Example: £400 borrowed for 90 days. Total amount repayable is £561.92 in 3 monthly instalments of £187.31. Interest charged is £161.92, interest rate 161.9% (variable). Representative 305.9% APR. We are a broker not a lender. We don't charge fees. We don't sell your personal information.
However, it is really important to have the right attitude towards a loan or else you could risk getting into trouble with it.
If you get too casual in your attitude towards a loan then you risk not caring enough and getting into trouble with it. This is because you need to be self-disciplined to make sure that you have enough money to repay the loan and to manage once you have made that repayment until you next get paid. You will need to concentrate on what you are spending to make sure that you do not spend too much money. You also need to think about solutions if reducing spending is not enough and you still need more money. You will need to consider how you will get that extra money that you need, perhaps by trying to earn more money or by selling things that you have. If you do not have the right attitude then you might just assume that you will be able to manage and not even monitor your financial situation. This could lead you to either not being able to repay the loan or not being able to manage your money through the following month and not being able to make ends meet.
Although you should always be aware of the loan and how you are going to repay it, worrying may not be the right word to use. Worrying implies being stressed and actually this is not a good way to be. If you get overly stressed then you could start to panic. Emotions like this can lead to you making poor decisions. It can be much better to stay calm and make the right decisions but also make sure that you are aware that you need to make sure that you do concentrate on repaying the loan and managing it without having over the top emotions.
It is worth thinking about how you will repay the loan and being well organised in doing so. If you have a plan of action, then you will know exactly what you need to do and you will be able to more easily stay on track. Make sure that you are aware to start with exactly how much you need to repay and when. Then you need to concentrate your efforts on making sure that you have enough money to do this. Normally the repayment will be taken by direct debit. Therefore you will need to make sure that there will be enough money in that account when the direct debit goes out. This will ensure that you do not get charged any late repayment fees. Then you will need to keep a close check on how much money you have left in the account, what bills you have coming out and after that how much you will have left to spend on other things. Make sure that you do not overspend. Perhaps by giving yourself a budget or just by being as frugal as possible until you next get paid. Try to make sure that you compare all prices and only buy the things that you really have to have so that you have enough money to manage. You could think about ways to earn a bit more money as well, to make sure that you will definitely have enough. There are lots of ways that you could do this such as doing some freelance work, doing some extra hours in your job or even getting a second job.