Should I Get a Payday Loan?

There are many payday lenders out there these days and we may wonder at times whether this type of loan will be suitable for us. This is a worthwhile question to ask yourself as you need to fully investigate what a payday loan is and …

There are many payday lenders out there these days and we may wonder at times whether this type of loan will be suitable for us. This is a worthwhile question to ask yourself as you need to fully investigate what a payday loan is and whether it is something that you need to use in certain circumstances. It is a good idea to actually know about all loan types because you will be able to make the right choice when you need a loan and you will know that you are choosing the one that is most suited to your needs.

What is a Payday Loan?

Payday loans came about because it was seen that there were no borrowing options for people with a poor credit record. It meant that if they needed money in an emergency, there was nothing they could do to help themselves. Therefore, lenders set themselves up in business to address this problem. They therefore did no credit check and lent money to people that had a poor credit record. However, because they were taking on a risk, they did not lend massive amounts This is still the case with payday lenders allowing anyone to have a loan but only lending up to about £1,000 in total. The repayments for the loans are also different to how most other loans work. They have to be made in one go. This means that the whole amount that is borrowed as well as the interest and charges all have to be repaid in one go. This repayment date is set to be the date that you are paid, hence the name and therefore there is a much better chance that you will have the money available to repay it.

Payday loans can be a great way to tide you over until you next get paid.

When Should They be Used?

Payday loans are designed to help out in emergencies and therefor they are very quick to arrange. It is possible to have the money within a few hours with some lenders which means that they are quicker than many other types of loan. This means that if you need money extremely quickly then this can be a good option for you. They are also designed for those with a poor credit report but they are not limited by this so you can use them even with a good credit report. However, it is wise to look at all of your options as it may be the case that there will be cheaper options available to you if you have a good credit report. They may not be so quick to organise though.

Are They Right for me?

Whether they are right for you will very much depend on your specific situation. If you need money quickly then they can be handy, but if you have an overdraft facility or credit card then these might be better options for you. If you have a poor credit record then it is unlikely that you have these then this might mean that the payday loan will be the only option for you. It is a good idea to think about whether this option is something that will appeal to you and also whether you will be able to manage the repayment. If there is just the one repayment and it has to be made quickly, then you will need to make sure that you will be able to pay it and pay for everything else that you need as well. It is no good getting one out and then once it is repaid, having to get another one because you run out of money. So, you need to be careful. You also need to think about the cost and whether you are happy to pay that much for a loan.

Is Opening a Shop a Good Way to Make Money?

Many people have a dream that they would like to open a shop. The idea of running a book shop, antiques shop, health food shop or whatever can be really exciting. There are lots of things that seem great such as working for ourselves, having …

Many people have a dream that they would like to open a shop. The idea of running a book shop, antiques shop, health food shop or whatever can be really exciting. There are lots of things that seem great such as working for ourselves, having lots of lovely customers and just being part of the local community. However, if you want to want to make money then you need to check that having a shop will work for you. There are lots of things that you may need to do.

Check What is Open in the Area and if they Make a Profit

It can be a good idea to think about the area that you are thinking of having your shop in and seeing what types of shops they have in that area. You should think about whether shops in that area look like they are making a profit. Is there a big turnover of different shops and what sort of shops tend to come and go and which ones stay. If there are independent shops, you will be able to take a look at their accounts if they are limited companies on the companies house website. You will be able to use that to find out how much profit they make and this will help you to know whether it is likely to be profitable. Quite a few independent shops are vanity projects, meaning the people that run them do it for more of a hobby than a business so you need to bear this in mind.

Consider Whether There is a Market and How you Will get People into the Shop

It is a good idea to think about whether there is a market for the things that intend to sell in the area that you are setting up the shop. Is there much competition and where from. What sort of people do you feel you will appeal to and are those likely to visit the high street where the shop is. You will also need to consider how you will get others into the shop. You may need to specifically use marketing to bring in people, especially if you are a niche area and want to attract people in form outside of the area. This may include setting up a website to sell things on so that you can extend your market and you will to promote this as well.

Think About Whether you Will Always Work There or if you will have Employees

It is worth thinking about whether you want to have employees or not. If you are running a shop there will be a lot to do. Not only will need to be there during the opening hours to serve customers but you will also need to be ordering stock and stocking up the shelves, clean the shop, do the accounts, dealing with online orders if relevant and marketing as well. There is a lot to do, especially if you open the shop for a lot of hours, which you may nee dto do, to be able to attract customers in.

Consider How you Will Manage if it Does not Make Money

It is well worth thinking about what might happen if the shop does not make any money. You could find that you will need to put a lot of money in, particularly to buy stock and pay rent and if your profit margins are small you may struggle to manage to make enough money to pay yourself anything. It is well worth thinking about how much you will have to sell in order to make a decent amount of money and considering whether it is manageable. If you are selling low profit items which are cheap, then your turnover may have to be massive for you to raise a lot of money. Make sure you add it all up first and work out whether you have a realistic plan. Also, even if you think you will be able to make enough money, make sure that you are prepared just in case and have thought about how you will manage for money.

Should I Buy or Rent a Property?

When we get to the point where we want to leave the parental home or we have just left university then we will need to think about whether we want to rent a property or buy one. It is a very important decision because there …

When we get to the point where we want to leave the parental home or we have just left university then we will need to think about whether we want to rent a property or buy one. It is a very important decision because there are advantages and disadvantages to both.

Buying a Home

  • If you buy a home, once you finish paying for it you will not have any regular payments to make. This means that when you retire, for example, there will be no concerns about having to pay money out each month for rent. It will also mean that it is likely that you will pay out less during your lifetime compared to someone that rents a property.
  • If you own a home you will be committed to a mortgage. This could be quite big and you will have to repay it each month or else the house will be repossessed. You will need to make sure that you do not take on a mortgage that is too expensive for you, that you will be able to afford the repayments. You will also need to be careful that you take on one that you will be able to afford even if the interest rates go up. So when you are looking at mortgages make sure that you find out how much you will be repaying each month and work out whether you will be able to afford those repayments and whether you could afford them if they go up.
  • If you own your own home you can decorate it how you wish and do refurbishments and things like that which means that you can really put your own stamp on it.
  • If you buy a home you know that you will not be moved on suddenly if the owner decided to sell up, which can happen with a rental property.

Renting a Home

  • When you rent a home, you will not have anything to show for the money that you have been paying out. However, if you do not know an area well or feel that there is a possibility that you may relocate, then it can be much more convenient to give a few months notice rather than having to sell a property before you can move. Sometimes having a house can actually be quite a burden.
  • Rent may go up from time to time but you will have to be given notice. This means that you will have chance to be able to move to a different rental property that is cheaper. If you have a mortgage, you may be able to change to a different lender, but this will take time to organise and you may be tied in to the one you are with anyway. You might also find that rent may not go up when interest rates go up anyway, but it is very likely that mortgage will unless you have a fixed rate.
  • Although you cannot do refurbishments in your home, you will save money by not doing this. You might be allowed to decorate in neutral colours and your landlord may even pay for the paint if you ask them first. Refurbishing may not be necessary anyway in your rental and you may prefer not to have all the hassle and dust when doing it.
  • There is a possibility that you can be move don if the owner wants to sell, but you will usually get a reasonable amount of notice for this. It is likely that there will be plenty of rentals around so you can find something that will suit you. It might even be an opportunity to find something nicer.

Can I Afford to Build my Own Home?

There have been lots of television programs on over the years where different couples, individuals and families buy some land and then build their own home. It can look like a lot of fun and a big achievement to be able to plan a property …

There have been lots of television programs on over the years where different couples, individuals and families buy some land and then build their own home. It can look like a lot of fun and a big achievement to be able to plan a property to your own specifications and to have control over it. It could also be really great to be able to show off the house that you have had built to your friends and family. However, most of the people in these shows end up struggling with the cost of things and running out of money. This can be avoided though if you plan your finances properly and make sure that you can afford it before you start.

Add up the Cost of Everything

It is a good idea to start by adding up the costs so that you know exactly how much everything will cost you when you buy it. This is not easy as things can change as you go along but you can get a pretty good idea. However, you need to be really careful to make sure that you include everything. You will find that there are things that sometimes get forgotten and then this can lead to problems later. So, as well as all the materials for building the house and the cost of the labourer, project manager and architect you will find there will be other costs as well. There might be service costs if you need to get electricity or water to the property, the cost of decoration, furniture and then fixtures and fittings. Also, you will need to pay for planning and building regs, interest on loans if you borrow the money, your own living expenses and rental of the place you will be living in. It is also very likely that the job will be delayed. This could be due to materials being late, fitting just taking longer, bad weather and things like this. If this happens and you are paying workers per hour, then this will put the cost up.

Have a Big Contingency

It is really wise to have some extra money. It is often the case that you will need some extra money here and there, perhaps building materials go up in cost, there is a delay or a problem that costs money and things like that. Some people like to add 10% for this, but you will need to decide how much you think might be necessary. It is always better to be more on the generous side so that you can be completely sure you have enough. You never hear people complaining that their contingency money was too much!!

Have a Back Up Plan

You will now know how much money that you need and be able to decide if you can afford it. You may start saving up or use some inheritance or money form the sale of a property or you may borrow the money. However, you do it, it is wise to have a back up plan just in case the contingency is not enough. Lots of people find that it is not and find that they need extra money, particularly towards the end of the build. You will need to have some thoughts about how you will cope with this should it be the case with you. Perhaps identify some potential loans that you might be able to take out or think about whether you will be able to work through the build and put some money aside or things like this. It may even be the case that you might have to cut back the work, so consider whether there are any bits that you could miss out.

How to Choose the Best Store Card

If you are thinking about getting a store card, but just one card, then you may wonder how to pick between them, especially if you shop in a lot of different places. With a store card it is often not so easy to see the …

If you are thinking about getting a store card, but just one card, then you may wonder how to pick between them, especially if you shop in a lot of different places. With a store card it is often not so easy to see the differences between them but there are things that you should look for.

Consider Where you Shop the Most

The first thing to do is to think about whether there is a particular shop that you use the most. This is because when you get a store card, you will only be able to use it in that particular shop and so you will probably want it to be the shop that you like shopping in the most. Then you will get lots of use form it. However, we often tend not to shop at just the one place, so you may have a couple of different places that you might be considering choosing between. If this is the case and even if it isn’t you should look at a few other factors as well when you are choosing between the cards and considering whether they are a good idea.

Check the Offers

You will find that some stores will offer extra benefits to card holders. This might be preview sale evenings, money off at certain times and things like this. It will vary between the different cards and it is a good idea to find out what they are. If the offers do not interest you then it could be worth considering getting a different store card or just using a credit card instead. If the offers are not good it just is not worth having a card. The offers may change of course and you could ask at the store as to what they have been in the past and what they might be likely to change to in the future, although nothing is guaranteed of course. IT might be wise to just wait to get the card when there is an offer that you like the look of.

Check the Interest

You may find that the interest on this sort of card is quite high. This means that if you do not pay off the full balance that you spend on the card each month, you will end up paying interest on it and possibly more than on a credit card. You will need to check this if course and compare it between the different cards. Of course, interest rates can change, but the only way you can really check is to compare them all at one time and then see whether the one you are considering seems competitive.  It is a good idea to consider whether it will be worth using a card like this if you already have a credit card with lower interest as that could be a better option for you.

Consider Temptation

It is really important to think hard about whether getting a card like this will be a sensible idea for you. Think about the fact that if you have a card for your favourite stall, will you be tempted to shop there more often? It could be the case that you will start shopping there more and perhaps not bothering to check process in other shops which could mean that you end up paying more for items. If the card has discounts you may just assume it is cheaper to buy at that shop even though the items may be cheaper elsewhere and if you only repay the minimum balance on the card you will end up paying a lot of interest as well.

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