[box type="note" style="rounded" border="full"]Amie is a freelance financial writer and blogger for sites short term loan sites like Wonga. In her spare time she enjoys reading about personal finance online.[/box]
Taking out a short term loan is a great way to give you a little freedom and flexibility in your life, but you’ve got to be careful. Throwing your money and newfound freedom in every direction may seem fun for a while, but when it comes time to pay the loan back, you could find yourself in hot water. For those of you looking to take out a loan, here are a few little pointers to make sure it goes as far as possible.
1) Don’t Shop Till You Drop and Blow It All
It is important that you spend a little money treating yourself, but acting like it’s never going to run out is one sure-fire way to go through it faster than is necessary. When you’re out shopping, look around and decide which things offer good value for money. Doing this will let you have the things you want, but it will also ensure that your loan stretches as far as possible.
2) Remember to Budget
Keep track of the money you spend, when your bills are coming in, and when you have to repay your loan. Budgeting is the key to successful finances, loan or no loan, and if you remember to keep an eye on things, you’ll never get into any trouble you can’t handle.
3) Save Energy in the House
The simple act of turning appliances off when you leave the house (not just on to standby) will ensure that your bills are kept to a minimum and you’re not throwing money away on things you’re not using. Electricity and water rates are running at all time highs, so conserving power when not in use is one very effective way to save money.
4) Know When Your Repayment Is Due and Plan Accordingly
Keeping your due dates in mind is strongly recommended, as otherwise you could end up with a nasty surprise. When you’re out having fun they may come round sooner that you expected, so being prepared for them will ensure that you don’t waste any time worrying about your next move.
5) Try To Pay It Back In Full
This is a very important point, especially for short term loans is a bad move as many companies will begin to charge you hefty interest rates. Making sure you pay your loan back in full when the time comes will save you a lot of money in the long run, as your interest premium will be very low. It will also help you to maintain a good credit rating and get even better rates in the future, should you need another one.
6) Don’t Bounce Cheques
This is a big no. If you bounce a cheque, not only will your financier charge you for a faulty repayment, but so will your bank. Bouncing cheques may seem like a way to gain a window on repaying your loan, but in the long run it will cost you an arm and a leg.
7) Look For A Little Extra Income
If you need an extra income, search for a job that you enjoy doing. Chances are you won’t get paid as much as in an office, but it will give you a little extra money whilst having fun at the same time. You won’t rely solely on your loan, and combined with your new job, the money will last longer.