Ask Yourself: Can I Pay My Bill and Repay the Loan?
How to Know If You'll Be Able to Repay Your Loan After You've Paid Your Bills?
Typically, payday loans are short-term loans designed to be repaid by the next payday (two weeks to a month, generally). According to the Consumer Finance Protection Bureau (CFPB) data, the average borrower taking out payday loans was in debt for over 200 days.
Weight Your Potential Risks
If you are not careful in your planning, a short-term crisis can turn into a long-term financial fiasco lasting for months. Think about this: are the penalties related to a late bill higher or lower than those related to an unpaid loan? This should be enough to do the math.