We make responsible lending decisions and this means any outstanding loan you have with us needs to be repaid before another can be offered, in order to ensure you can afford to repay what you borrow.
Deciding on your total borrowing amount is the product of a number of different factors. You need to take into account your income and your expenditure in order to work out exactly how much you can afford in terms of making repayments. There are loan types out there that roll up the interest until the last repayment and then ask you to pay the loan off in one go. These types of loans are often linked to an investment that runs alongside which at maturity will pay off the outstanding loan amount including the accrued interest, but not always as payday loans are also an example of what is known as a "balloon payment". However, it is far more common for interest to be paid as you go with every instalment.
As stated above we have taken the decision that all prior loans must be paid off in full before allowing you to apply for another loan. Remember also that just because you have paid off a previous loan doesn't necessarily mean we will be able to lend to you again. This surprises some people as they think that the more you borrow and repay the stronger their chance of being approved again.
This is not always the case. We have to take into account if our loans are being used for the purposes for which they were designed. If we think that your borrowing is unsustainable or indeed unaffordable we cannot lend to you. This is a complex decision as we know that customers may see payday loans rather like an overdraft facility as they may not have access to one or that the fees and protection a payday loan offers versus and unauthorised overdraft make it a rational and favourable choice.
Rather than ask can I have two loans at the same time, why not start by asking do I need two payday loans at the same time? This is a good way of forcing yourself to pause before you apply for finance. Sometimes people get a little caught-out in thinking that more is better when it comes to borrowing but whilst it might make the short-term easier you need to assess your personal circumstances carefully to make sure it is the responsible thing to do.
Creating and more importantly, sticking to a budget, can give you tremendous peace of mind. People that keep a budget say that it helps them plan and save more efficiently and therefore that made them feel better about life. That is certainly something to aspire to. Creating a budget will allow you to really see what is passing in and out of your bank account and savings, permitting a greater degree of accuracy when planning. As a result, you will be more prepared for the sudden cash flow emergencies while also potentially building things like an improved credit rating or a savings account for the long-term. Just think about that for a moment, a little bit of admin for a lot of serenity! Something that can help you build a solid foundation for the future.
We know there certain things that are very hard to resist splurging on, however, it will not help your budgeting efforts.
Once you've made your budget and taken stock of your financial self then you are probably going to want to make a few tweaks and adjustments to your spending habits. This can not only help you reign in any unsustainable excess (that thrice daily coffee shop trip springs to mind) but also start to create a budget surplus. A surplus is the key to financial freedom and long-term goal achievement. Please be realistic and honest when conducting this exercise. For example, if you regularly spend around £200 a month on travel to work then deciding that you are going to cycle the 50-mile round trip every day is probably not going to wash.
It is far better to make small incremental changes than drastically change your lifestyle. Going back to the trip to work, perhaps you could look into a car share with a colleague, that seems far more sustainable and a good way to reduce your commuting costs. If you are convinced you can cycle to work why not try it a day a week and gradually work your way to more. Cuts need not be drastic but can come from a variety of measures across the board. It is far more sustainable and realistic to do this than a sudden dramatic change that you will really suffer for and is unlikely to appeal in the long term.
So, before you seek that extra bit of credit, think do I really need it and can I afford the repayments?