If you are looking to buy a new laptop, then it could be the case that you will need to borrow the money to do so. This is because a laptop could be quite expensive and even a second hand one could be too much for some people to afford. It is therefore worth thinking about whether you might have to borrow to get one. If you do decide to borrow then you will have another decision to make. You will need to choose between all of the different loan options that are available to you. This can be pretty tricky as there are so many. One particular loan, a payday loan, could be something that you are looking at. You will need to make sure that you have a full understanding of how the loan works as to decide whether it will be the right loan for you.
Will it be enough?
The first question to answer is will the payday loan be enough money for you. There are many lenders and the amounts that they will lend will tend to vary. However, you will probably find that they will lend up to about £1,000. This could be plenty for a second hand laptop and some new ones, but it will depend on what specific laptop you want as to whether this will be enough for you. You will need to think about whether you are getting a laptop that you can afford if it is more expensive than you can buy with this sort of loan. This is because over £1,000 is a lot for anyone to pay and if you are having to borrow the money to afford it you need to ask yourself whether this really is the right amount to spend.
Even if you do buy a laptop that is less than £1,000 you will still need to check how much the lender will let you have. Payday lenders such as Cobra will often lend smaller amounts to first time borrowers because they want to build up some trust before lending larger amounts of money. They will think about whether they feel you repaid the last loan well and if you show that you are able to repay it on time, then they will lend you more. This will vary between lenders though and so you might have to contact a selection of them in order to check whether they will be able to lend you enough money. This will be especially important if you want a really expensive laptop.
Can I manage the repayment?
It is important to understand how the repayments work with a payday loan. You will need to repay the amount that you have borrowed plus the interest and fees all in one lump sum on your payday. Although this has many advantages, such as being able to clear the debt in one go, you also need to think about whether you will be able to manage it. The fact that the direct debit goes out on your payday will help as you will have a chunk of money coming to you on that day. However, you will still need to make sure that there will be enough as you may have other payments going out on that day too, perhaps direct debits or you might be clearing an overdraft.
You also need to make sure that you will be able to manage to buy everything that you need for the rest of the month once that payment has gone out. You will still need to cover the costs of all of the other things that you normally buy. Whilst you might be able to reduce your spending on luxury items, you will still need to pay your rent, transport to work, food and utilities for example, and so you will need to check that you will be able to afford to do this.
Will the cost be reasonable?
It is also good to compare the cost of a payday loan with other loans. You might find that there are other loans that are cheaper. IT is always worth comparing the costs as the cost of a loan could make a considerable difference to how much you have to repay and how long for. You may also find that you prefer a loan which you need to repay in instalments as although the loan will last for longer you will be able to more easily manage. Some people prefer to clear it quickly so they eliminate the burden of a loan really quickly, but there are others that are happier paying in instalments. You will need to note that a payday loan needs no credit check and so if you have a poor credit score, it could be the only option available to you.