If you have a poor credit record then you might think that
that there are no loans available to you and that you should not borrow money.
Borrowing is always a decision that should not be taken lightly but you may
find that it could be a possible option for you. If you have an emergency, for
example, then you could look and see whether there might be some lenders that
will be able to help you out.
Can I borrow the money?
If you are looking at borrowing but you know that you will be turned down for most loans because you have a poor credit rating then you may lose hope. However, you will find that you will have a good chance of being able to get a payday loan. These were actually set up to help people who have a poor credit record and find it hard to borrow money elsewhere. There are no credit checks with a payday loan and this means that even if you have a poor credit record you will still be able to get the loan. There are just a few criteria that you will need to fill in order to qualify. You will need to be over 18, be a UK resident, have a regular income and have a bank account. There will be very few people that will not be able to fulfil these criteria and therefore most people would be eligible for the loan. You could always contact a lender and speak to them about it to find out for sure.
Is it wise to borrow the money?
Even though you are very likely to be able to borrow the money, it is worth thinking about whether you should borrow it. If you already have a poor credit record it could be because you have had financial problems in the past. Of course, it could be because you have not borrowed before or have very few financial commitments so there is no data to asses you on. However, it should still be something that you think hard about.
Do I really need it? – payday loans are
designed to help out in an emergency. It is worth thinking hard about whether
you really need the money. Consider why you are thinking of getting the loan
and whether it is for a purpose that is really necessary. Consider whether
there are any other options that you could use and which will be the best for
Can I afford to repay it? – it is really
important with any loan, to make sure that you are confident that you will be
able to repay it. As the repayment day for a payday loan is always the day that
you are paid, it is easy to assume that means that you will be able to afford
it. However, it is wise to have a look at what other payments will go out that
day and whether you will have enough money left the repay the loan. Make sure
that you look back at old statements to examine the figures so you can be
confident that you are making the right decision.
Will I manage afterwards? – it is also
wise to make sure that you think about the rest of the month. Once you have repaid
the lump sum of money on the day that you have been paid, you will have to
manage all of the rest of your expenses with a lot less money than you normally
would. Consider whether you will be able to manage this. It might be that you
will have to cut back your spending significantly and if this is the case then
setting yourself a budget could be really useful. It might be that you will
have to earn more and so researching what you might be able to do in order to
achieve this could be useful. You need to be confident that you will be able to
cope before you take on the loan.
So, although it is very likely that you will be able to take
out a payday loan even with a poor credit record, you need to be completely
sure that it is the right options for you. Look at how much it will cost you
and whether you will be able to afford it. Consider whether you really need it
and look around to see if there are other options. It is worth putting in this
work as it could make a significant difference. If you do decide to go ahead,
then make sure that you compare different lenders so that you are sure that you
are using the one that is best for you. Compare how much they cost, but also
find out about them and think about which you think will be the most suitable
As parents we have a natural instinct to want to help our
children. When they are little we do everything for them and then try to help
them to become more independent in every way. However, when they have
difficulties then we are there for them again to see if we can help. This means
that whatever it is we can be tempted to help. If we find out they are in
financial difficulties, then we might again help them. However, is this the
right things to do?
Advantages of helping If we help out then our children will be under less stress. They will not
need to find the money to pay the loan and they will be free of the debt. It
can make you and them feel better to know that the debt is paid off. They will
no longer have to worry about how they will find the money and whether they
will be able to cope with paying for everything else that they need. This can
make them feel a sense of relief and you will feel better knowing that you do
not have to worry about the anymore. However, there are disadvantage to helping
them out as well.
Disadvantages of helping It might feel like there cannot possibly be a disadvantage to helping
someone out, but there can be many.
They will not learn to cope on their own
– if you keep on helping them out, they will never learn to cope on their own.
It is so important to learn how to budget properly and manage your money so
that you are able to afford all of your essentials. Knowing what money you can
afford to spend and what you cannot is really important. If you just keep
getting help when you get into financial trouble then there will be no need to
learn how to manage your money better.
You get short of money – you may also
find that if you bail them out that you will be short of money to pay for the
things that you need. You do not want to end up struggling yourself or having
to borrow money. You may think that you can manage, but if they then keep
asking for more and more money, then you may find that you do start to
Others get jealous – if you help out one
family member then you may find that other members get jealous. There is often
a lot of jealousy between siblings and even between extended family members, so
this could be another reason for it. It can mean that their relationships
change as a result and that they no longer get on very well because of it. Of
course, you could try to even it out by giving out money to everyone to stop
the risk of jealousy but that could be too expensive for you.
They expect it all of the time – Once you
help them out once then they might expect that you will do it again. This means
that you might start to find yourself being expected to find money over and
over again. This could start to put on strain on you in a selection of ways and
you might find it harder and harder to refuse.
It effects your relationships – you may
find that helping out your child could affect your relationship with them. This
could happen in different ways. Once you have lent them money they could feel
indebted to you and that might be a bit odd. Alternatively, they might expect
you to keep on doing it and that might not be good either.
It is therefore worth thinking really hard about whether it
will be a sensible idea to help your child. If they do not ask for help then it
is probably best to just let them get on with things. If they do ask for help
then it could be much more valuable to give them help with budgeting rather
than actually giving the money. It can be tricky, because they may not want to
listen, but if you sit down with them and try to help at least you will have
done your best. You also need to consider what your relationship is like with
them, their siblings and any other family members and think about whether
helping might influence that. You might think that they will not find out, but
these things do have a habit of getting out and then there could be problems,
especially if they felt that you had tried to keep it from them. Also make sure
that you will be able to cope financially if you help and consider what might
happen if they ask for help again. Think about what the consequence will be if
you suddenly cannot help them when they have become dependent on you. They
might fall out with you or be in big financial trouble.