Should I use a Payday Loan to Buy Birthday Gifts?

Buying gifts for anyone, whether it is a friend or family member can be really great fun. It can feel great to give them something special and to make them happy as well as show them how much you care about them by giving them a gift. However, it can be expensive to buy gifts and if you are short of money then you may need to borrow money in order to afford them. You may consider taking a payday loan out to pay for them. It is worth checking out all of your options though, to make sure that you pick the best one for you.

Save up or use savings

If you have time, then you might be able to put a bit of money aside and then be able to afford a present without borrowing money. Maybe taking a note of when birthdays are and trying to schedule your savings around that will help. If you already have savings then using these instead of borrowing is usually best. It tends to be cheaper to forgo the interest that you would get on the savings to avoid paying it on the loan. This is because loan costs are normal higher than the interest you get on savings. However, this is not always the case so it is well worth checking.

Compare different loan types

If you are thinking about getting a loan, then compare all the loan types first. You may assume that if you need something quickly or if you have a poor credit record then a payday loan is your only choice. However, there may be other options available and you should look at them to check before you go for a certain type. This is because you may find that there are cheaper alternatives or other loans that will give you a repayment plan that suits you better or it is with a lender that you would prefer to go with.  It should not take too long to do this and you might be surprised at what you can find.

Have a no present pact

It could be worth talking to the person about having an agreement to no longer exchange gifts. This might be a difficult subject to bring up but it could be a huge relief to them as they may be having the same struggle as well. They might be happy to stop exchanging gifts altogether or they might prefer to just not do it for a little while to give you a chance to be in a better financial position. It can feel mean, but if they care about you, they will not want you to struggle financially just to buy them a gift. In fact, they may feel guilty when you buy them gifts because they know that it is costing you money that you should really be spending on necessities. It can be difficult for people who like giving gifts to realise that some people do not like receiving them. However, they can be an embarrassment or awkwardness, not just because the person is spending more than you know they can afford but also because perhaps the gifts are not appropriate. It could even be that they cannot afford to spend as much in returning the favour so they feel sad. Obviously you may not be able to suggest this to everyone, particularly any young children that you have, but you could cut down what they have or be very careful with your budget.

Delay buying until you can afford it
Another solution could be that you delay buying them a gift until you can afford it. You could explain to them that you will have to wait before getting them their gift. If you do not want to explain why but feel you should tell them something you could always indicate that you wanted to wait for something to come back into stock or that you had ordered it and it was taking longer than you expected. You may not enjoy lying though and may prefer to be honest or to not give an explanation.

So there might be alternatives to the payday loan which could help you to avoid borrowing money. Loans like a payday loan should really only be used in emergencies anyway. That is what they are designed for and so using them for things like gifts is not really their purpose. All loans are expensive and so you should really think hard before getting them out. You will have to repay them and pay costs and/or interest on top and so it will mean that anything you do buy with the money you have borrowed, will be more expensive as a result. So, it is always worth thinking really hard about whether borrowing money is going to be the right decision or whether it will be a decision that you will regret.

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