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How to Create a Budget for Refunding a Payday Advance

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How to Create a Budget for Refunding a Payday Advance

We've all been there from time to time. Your car needs an unexpected repair or one of your family members gets in an accident and needs some medication. Emergencies happen to us all, and often the most difficult part is finding the funds to face it head-on. Sometimes, even when we have every intention to create an emergency savings, the money just isn’t in our bank account. That’s where payday advance loans come into play.

Not all of us have the luxury of putting away a hefty savings account - with more than 50% of Canadians living paycheque to paycheque, it's not always possible to put extra cash away each month. When times get tough and you feel like you can't get help from traditional lenders, you can try taking out a payday advance.

These types of loans are a short term commitment that should be undertaken with consideration and understanding of how you are expected to repay them. That’s why we want to talk about how you can budget should you decide that payday loans are a good choice for your lifestyle.

Taking Money From the Future

When you take out an online payday loan, think of it as taking money early from your next paycheque. Try looking for an online lender with excellent reviews will ensure you only borrow from the most reliable company. Not only will you receive great customer service this way, but many modernized online lenders will make sure you have all the tools you need to understand your loan agreement before signing.

A responsible lender wants their customers to achieve longterm financial goals and get back on their feet. The most trustworthy companies will only lend you the amount that is within your repayment capacity. If you borrow from an unregulated lender, you could end up in a debt trap by taking out more loans to stay afloat. Rather, work to limit your spending while you’re paying off this emergency loan. Not only will your credit score appreciate a timely payment, but so will your bank account.
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Limit Extra Spending

Usually, the first step to budgeting when it comes to repaying a payday advance is to limit your spending from the time you receive the funds until the due date for the loan payback. It doesn’t matter if you have the loan for 14 days or 30, making sure you don’t spend more than you have to is a must. This will help to offset the interest rate and make sure you aren't faced with an NSF fee when the money is withdrawn from your account on your pay date.

During this time, try a few tricks to help prevent unnecessary purchases: get an accountability partner - someone who can go in on the no spending rule with you and discuss money goals together, or avoid your spending triggers like browsing Amazon or going window shopping. Keep yourself from going out to eat, buying clothes or other extras, and upgrading things at home. The more you save now, the easier it will be to pay off your instant cash loan on time.

Find Ways to Save in Your Daily Life

Other than limiting your “extra” spending, you should also look to cut back on your normal, obligatory spending during this time too. For example, if you can drive one less day a week or find a way to save $50 at the grocery store.

Think about ways you can save on electricity and other bills as well. As a bonus, all the budgeting and cutting back you do know can help you save in the future should you keep up with it after the loan is paid off.

Take Up Extra Work

If cutting back on trips to the mall didn't work and neither did cutting back on the basics, then it’s time to find new methods of actually making money. Weekend jobs that can be taken for a short period are everywhere, especially in this day and age where many are through apps on our phones!

You might be able to make $100 from painting a friend’s bedroom or $500 from working a convention all weekend. Think about extra work on TV as people are needed every day, and the hours can often fit into a work schedule and pay well.
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Need a Payday Advance?

iCASH is a new type of payday lender. We’re here to make the process of getting a quick and easy loan. On top of that, we want to make sure that you can pay the money back in a reasonable time.

This is why we offer our exclusive repayment plan called Flexpay, which allows you to make a series of repayments rather than paying a lump sum. We know times can get tough; iCASH is here to mke the lending process easier and allow Canadians to reclaim control of their finances. Visit our FAQ section to learn more about how you can get a payday avdvance in under an hour.

Ramona Glanville

Ramona has been a regular contributor to some of Canada's top wealth-management editorials for over 30 years. She strongly believes in good saving habits, reducing financial clutter, and red wine.