Should I get a payday Loan to pay for a Gift?

Whether to get any sort of loan should always be a decision that you think hard about. There are all sorts of loans and it is important to make sure that you get the best one for your purpose. You need to consider the cost as well and whether you think that it is good value for money as well as calculating whether you can afford the repayments. With a payday loan, there are some differences compared with other loans and so it is even more important to think it through.


The cost of a payday is often quite high compared with the cost of other loans. This means that it can be even more important to think about whether it is the right choice for you. As with all borrowing decisions, you should start by thinking about whether it is the best loan for the job. As a payday loan can be expensive, it can be wise to consider whether you might be better to use another short term loan like an overdraft or credit card. These do have disadvantages as well as advantages and if you have a poor credit rating, they may not be an option for you anyway.

Do calculate the total cost of the loan even if you have no other borrowing options. Think about whether you think that it is worth paying this on top of the cost of the gift. There may be other options, such as delaying buying something until you do have the money, which could be worth thinking about. The recipient may be very happy to wait for their gift or they might rather you didn’t even buy one if they knew that you would have to get into debt to buy it.


A payday loan tends to have just one repayment. You have to make this just after you get paid, in order that you are most likely to have the money available to do it. The same goes for all bad credit loan types. They even make you set up a direct debit so that you cannot forget to make the repayment. This is very handy, but you still need to be confident that you will have enough money in the account to cover that repayment. You also need to make sure that you will then be able to manage until you are next paid without having that extra money. It is not always that easy to work this out but it is possible, think about how you will feel to go without these things and whether you will be able to manage without them for a few months.

It is always good to imagine what might happen if you have other extra expenses as well. Perhaps you might have other things that you can cut back on or ways that you might be able to earn some extra money. It is worth giving it some thought just in case you need a plan to fall back on.


Using a loan for a gift is always a bit tricky. Payday loans are designed for use in an emergency and because of the cost of them, it is wise to stick to that. However, buying gifts is very much an emotional thing and it can be difficult to not do it particularly if it for someone we really care about. Many of us do not need to have gifts to feel the love that someone feels towards us, but many people just enjoy giving gifts to show that. It can be difficult to think that you might not be able to give a gift for someone. This is probably particularly tricky if the gift is for a child.

It can be good to think about how the recipient might feel if they knew that you were getting into debt in order to buy them a gift. Personally I would much rather go without, but my views will not be shared by everyone. Some people enjoy being spoiled and showered with gifts and others are happy without that. It could be worth trying to explain to the person about it and see what they think. This can be difficult to do though.

It can be worth thinking about whether you can buy the gift at another time or make something rather than spend money. Consider whether you have anything that you can re-gift or whether you can pick some flowers form your garden. There are many options that you can take rather than buying a gift. However, these may not be appropriate for the person that you are buying for and if there is no option but to buy a gift then a payday loan might be the way to go. However, make sure that you compare the cost with other forms of lending so that you are sure that you are making the best decision for you. Also compare payday loan costs as they will vary.

Is a Guarantor Loan Right for me?

Choosing the right type of loan is really important as it can affect many factors such as the cost, ease of repayment and amount of money available to borrow. Therefore when you are considering whether you should get a guarantor loan, then you should consider these things as well as factors specific to the loan such as who to use as your guarantor.


Finding out the cost of a loan will enable you to know exactly what you will be paying out in total. It is important because it will give you an idea of how much more expensive the item you are buying is, once you take into consideration the loan cost. You need to think about whether you would still buy that item if it was this price when you bought it.

You should be able to find out the cost of a loan by looking at the terms and conditions and calculating it. This can be quite tricky though as even if you can calculate the interest, you will have to check for any additional fees to add on and this information is not always that easy to find. It is much easier to contact customer services and ask them for the figure and they will be able to calculate it for you.


It is important to know how much the repayments will be so that you can calculate whether you can afford them. Although with a guarantor loan, if you cannot make the repayments, your guarantor will pay them for you, borrowers would normally want to try hard to make these repayments themselves. Therefore you need to think about whether they are something that you can afford.

Again, you may need to speak to customer services about how much the repayments will be. If the loan has a variable rate, then the repayments could go up if the interest rate goes up and so this is worth allowing for as well. Look at your income and spending each month and see whether you can afford the repayments or whether you can give up buying certain things so that you can free up enough money to cover the cost of them. Think about the consequences of giving these things up and how you would fee having to do this for the entire time that you were repaying the loan. Consider whether you would still cope if the interest rates went up and think about how much extra you could afford to pay.

Money available

Loan types will differ in the amount of money that they will let you borrow. For example you can borrow far more money on a mortgage than you can on an overdraft. Therefore you will need to think about whether a guarantor loan will have enough money available for your needs. Obviously it is wise mot to borrow more than you need either, as this will lead to extra costs of borrowing. So you will need to think carefully about what money you need and look into whether there are guarantor loans that will provide you with what you need. It should be easy enough to find out how much money they will lend to you if you do a search and look at the provider’s websites. They should have details such as this readily available for potential customers.

Who to Choose to be Guarantor

Choosing a guarantor can be really tricky. You will want to find someone that you trust and that you know has a good income so that they can cover your repayments should you need them to. They will obviously also be willing to act as your guarantor. You will have to happy to ask them about it and then to have a discussion about how you will do your best to make the repayments and things like that. It is really important to think about how having the loan might affect your relationship with them. It may all seem fine, but if you miss some repayments and they have to make them, then this could have an impact on them. It may mean that they have to go without things in order to make your repayments. You will also need to agree with them what will happen in this case and whether you will need to repay them at some stage and if so, how much and when. This could even have an impact on others as well, if they get to find out about it. There could be jealousy form other family members if they feel they would have liked a loan of this type or feel that you are getting special treatment or even more money than them. It can be quite a tricky thing as money is often a cause of contention between family members and can often cause arguments or worse, cause people to permanently fall out with each other.