Types Of People Who Shouldnt Apply For A Loan

With all the upsides of getting a payday loan online – they offer a quick fix for a seemingly hopeless financial deficit, they are readily available and convenient, etc. – there are certain types of people, and certain situations, in which it is really best to find other means of facing the money requirements. If you constantly find yourself worrying about where to find money for repaying your outstanding debt, it might be a good sign that you are one of the (many!) people who make really disastrous borrowers. Read on to learn if this holds true about you or someone you know!

1. You have no plan on how to repay the money borrowed

Payday loans are not issued against any kind of security other than a postdated check, hence another name for them – unsecured loans. This is good for when you want to get money advanced fast and without any check, but on the downside it means that the lenders do not really concern themselves with how you are going to make the ends meet once you repaid the debt. After the maturity date, you may find yourself left without means to cover your most basic needs, simply because the lender is granted direct access into your electronic account the moment you sign the contract with them.

2. You are constantly renewing your debt

Your principal debt is never repaid, and you keep on rolling it over and over – this situation is called “churning” in financial circles. It is time to stop and “cool off”, and preferably never get trapped in this practice again because it’s time to face the music: borrowing money creates more trouble to you than it does good. If things were otherwise, you wouldn’t find it so difficult to repay the principal debt in the first place. Read some professional tips on how to manage your finances better!

3. You want to borrow money for something insignificant

We totally feel you: a girl needs only two things in life; two new things every day. But true care for yourself starts when you can calculate the long term benefits over a fleeting thrill of bringing home a haul from ALDO. The rule of thumb here is this: if you can do without an item you plan to borrow money for, you should totally do without it. Set aside money for spoiling yourself – you will avoid not only a debt trap, but a guilty feeling that comes with the territory.

4. You borrow money to indulge in addictive behaviors

Much like the previous case, this one is a big no-no. Addictions of all kinds, be it substance abuse or gambling, should be addressed with all seriousness, best by bringing a professional therapist on board. Fueling your addiction with money you do not own is the worst thing you can do. Even if you seem like there is no other way out, there is one: it is not easy, but it is full of compassion for yourself, which is the opposite of self-indulgence. You deserve it. Here are some phone numbers with someone who cares on the other end of the line.

5. You cannot manage your finances

There is nothing to be ashamed of. It can be hard to admit, but by admitting the problem – rather than by masking it with a payday loan – you will be able to find a long term solution. You would be surprised at how many brilliant people out there are totally helpless when it comes to managing personal finances. We of course think Nicola Tesla and Oscar Wilde now, who died “above their means”, but some celebs like Johnny Depp and Mike Tyson are deeply in debt now. Yep. Johnny godlike Depp. Copy his swag, not his spending habits!

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