Verbesserung der Kandidaten–Selbstselektion durch SelfAssessment
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1. Things to consider first before getting a payday loan
Over the course of years, payday lenders had boomed in popularity because of
their simple, fast and no fuss application process. It is also due to the fact that
borrowers are more likely to get a small loan from payday loan companies
compared to banks which leaves you little to no chance at all. Depending on the
payday lender one chooses, the borrower might be asked to provide little to no
documents and because they exist mostly for emergency cases, they understand
the urgency of the masses to acquire a sum of cash as soon as possible so
applicants won’t be asked to wait too long. In fact, processing only takes within
the day so borrowers will know right away if he or she has been approved for a
loan. Before considering taking out a payday loan, there are various things to
assess first before hunting the supposed “saviour” in your time of need when the
next salary seems so far away.
Is the interest fair?
Payday loans might be highly accessible but they are notorious for having very
high interest rates which can lead up to 25% of the amount you borrowed. Ask
yourself first if the trouble of paying will be worth it in the end because people
tend to “misplace” cash and stray from practical budgeting. This is one of the
major reasons why salaries don’t make it until the next week.
Will I be able to pay on time?
How certain one can be that no major emergencies will come along between the
time the loan application was approved and the time when the loan is finally to
be returned? This would take serious priority assessment if you would stick to
paying the loan on time no matter what happens or if you’ll have to delay
payment because something else requires the money that was supposedly
already allocated to paying off your loan. Choosing the latter will naturally pile up
charges to your loan that you’re still obligated to pay.
2. Will what I make cover my bills plus the obligation of paying off the loan?
This is where proper budgeting comes into play. Unless you have extra funds
allocated for savings or simply for personal use, you’re likely to be unsure if you’ll
have enough on your next payday. Let’s say a head of the family is paying the
bills, shopping for groceries on a weekly basis and sending his children to school
with allowance, has his pay fixed solely on the mentioned priorities and leaves
only a small percentage for his personal expenditures (i.e. fare when commuting
to work, buying his own food at the cafeteria, buying personal items, etc.).
Suddenly, one of his family members got sick and had to go to the doctor but the
salary has served its purpose and then he decides to take out a payday loan. It’s
like he took out a partial chunk from his already meager salary only to be
returned to the lenders and eventually, he will be wondering where to get
additional funds to address the needs of the household which he always
prioritizes first.
Do I have any other options?
Asking loans from trusted friends and relatives is another option to consider. If
they understand your situation, you’ll be able to get a certain amount and won’t
be pressured to pay it back right away.