Many people successfully use payday loans to get through short-term financial difficulties. They can help you cover one-off expenses such as car repairs, hospital or veterinary bills. However, in some cases, an online payday loan isn’t the best option for you, and you should consider your options before requesting a loan. Make sure to think carefully about whether a payday loan is right for you. The first thing to consider is whether you have an alternative way to cope with your finances, such as borrowing from family and friends. 

Is A Payday Loan Right For Me?

While you may be eligible and qualify for a payday loan, this does not necessarily mean that it is the right option for you. It is best to exhaust all other efforts to get the cash and look at alternatives such as borrowing from family and friends.

Borrowing from a friend or family member can provide emergency funds while avoiding lenders with high-interest rates. If you have someone close to you who is willing to help you out in an emergency and both agree that it will not harm a relationship, this may be the best option.

Am I Borrowing For The Right Reasons? 

However you choose to borrow money, it should always be for the right reason. You should only borrow money when it is necessary, and you’re in a financial emergency. Borrowing money can help you through unexpected expenses such as car repairs, hospital or veterinary bills, or need to cover the cost of emergency home repairs or a new boiler. You should never borrow money from a lender or relative for an impulse purchase, shopping spree, or night out on the town. 

 Can I Borrow From Family Or Friends?

Make sure you have considered alternative options. It is always best to first discuss any other options you might have to source the cash necessary to help you through your financial difficulty. Borrowing the money from family and friends may be the best solution if possible in your situation. If a friend or family member is willing to lend you the money you need and you know you will be able to repay them. Someone who cares about you may want to help you avoid the interest charges that come with a loan.

Can I Afford To Make Repayments?

It may be tempting to ask friends to lend you money to avoid interest or fees, but you still need to think carefully about whether you can afford to repay it. You also need to reflect on what might happen if you are unable to repay the funds. When you borrow from family or a friend, remember that if you don’t refund the money, this could damage the relationship. 

It is a little different compared to not being able to pay back a payday loan where there are added fees and damage to your credit score – but that does not mean that it is not equally as important with friends and family, since a relationship could be on the line.

How Much Do I Need To Borrow And How Long For? 

Whether you are enquiring for a payday loan or borrowing from family or friends, you should know how much you need to borrow. Think about how much you need to get you through your financial emergency. With Pheabs, you can borrow from $100 up to $35,000 with a payday loan. Make sure only to borrow what you need, even if you qualify for a much higher amount. Consider whether you want to repay on your next payday or pay in installments. You can choose to borrow from two weeks up to five years. If you can repay your loan early, this will also save you money on interest. 

If you choose to borrow from family or a friend, be sure to draw up a budget to work out how much you can afford to repay and over what period. Look at your current income and living expenses to work out an affordable repayment plan that suits both parties.

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