How To Responsibly Repair Your Car Using A Payday Loan

Payday loans are created to give you cash fast when an emergency that you cannot immediately afford arises. One of the most common uses for payday loans that most people think of is to complete immediate repairs on your vehicle. While this is a great reason to take out a payday loan, it is still important that you take these steps to act as a responsible borrower. 

Get Several Quotes 

If an emergency arises when you do not have a lot of money in the bank, you may naturally experience a fight or flight response. While this response was originally developed in humans to escape predators, in modern America it is most often stimulated by psychological stress. When you feel threatened or experience acute stress, you will probably take the first course of action that solves the problem due to your heightened emotions. 

However, it is important that you take the time to get multiple quotes from various mechanics and consider alternative options to fixing your car right away. This may save you money in the long run and keep you from experiencing more emergencies in the future. 

Consider Doing the Repairs Yourself 

If you are mechanically inclined, you should be able to do many simple car repairs on your own. This way, you will only have to take out a loan to cover the costs of the parts as opposed to the labor of the mechanic and service charges of the garage you go to. 

While this is a good way to cut costs and reduce the amount you owe, you should also consider that a poor repair can end up costing you much more in the long run by causing more damage to your vehicle. 

Weigh the Cost of the Loan Against the Cost of Public Transportation 

The origination fee you will pay for a payday loan varies based on which state you live in, how much you need to borrow, and when you will pay the loan back. However, you can generally expect to pay around $15 for each $100 dollars you borrow. Once you know how much money you will need and the exact cost of the loan from your preferred lender, you may want to check out the public transportation options in your area. It may be worth it to take the bus to work for a week until you get your next paycheck. 

However, if the car is used to transport multiple people, or your next paycheck will not come for two weeks, then it may actually be cheaper for you to get a loan and get your car repaired immediately. You should also consider the weather and the time you will lose waiting for public transportation when deciding whether to get a loan or not. 

Only Request the Amount You Need 

When you decide to get a payday loan, it can be tempting to get a little extra to pad your budget until your next paycheck. You should stick to the amount you absolutely need and only borrow what you know you can pay back from your next paycheck, though. 

Pay the Loan Back By Its Due Date 

While payday loans, like those at Money 4 You, are a valid solution to emergencies, they begin to cost too much to be helpful if you have to constantly roll the amount due over to your next paycheck. If you are unable to pay back what you need, try asking friends and family for help. They may be able to lend you small amounts of money or offer recommendations for a cheaper mechanic that will make the overall amount you borrow from a payday lender more affordable. 

Getting a payday loan for an unexpected auto repair can be a mature, responsible financial decision, but only if you follow these steps to make sure you can pay it back on time. 

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