You know the story, you are half way through the month and you have run out of money. How will you survive?

Well because you might have bad credit you can’t have an overdraft and you don’t have any credit cards either.

You consider a payday loan as your only option but is it worth it?

If you are in debt but find that you are needing to lend money then you should ask yourself why.

Why is it that you have run out of money this month? Is it because you have overspent? Faced an unexpected repair bill or are you just struggling to manage your finances effectively?

Slippery Slope

Whilst the idea of a Payday Loan might be tempting to you, it means you are adding on more debt to your outstanding balance. It will also cost you a lot to borrow the money.

Let’s say you borrow £100 for a month. It is likely to cost you about £30 in extra interest. If you are struggling this month then how will you repay an extra £130 next month?

Before you know it, you will be rolling over the loan and just paying the interest. This is what happened to me. It started out with one payday loan and as I struggled to repay, became two payday loans then three and so on.

What I am trying to say is that if you are in debt then adding more onto your debt will only strain your finances further. So think, is it worth it?

What Else can you do?

If you have friends or family you could ask them to help you out. If you don’t have enough food for example see if they can feed you.

If you need cash, sell some items on eBay assuming you have anything that is worth selling of course. Your employer may also be able to offer you an advance on your wages. This is certainly possible where I work now.

In other words do anything you can to avoid borrowing money and falling into the payday loan trap.