You’ve needed extra money for a while now, and after applying for your payday loan request it has been successful. This is great news if you have a specific, critical and urgent cost that needs covering. Now, you’ll need to answer the following questions: “What should I do next?” and “What should I avoid doing with the loan?”. Payday loans are great for getting you out of a critical financial situation, but first, you must determine what warrants acceptable and unacceptable use of the money. A loan isn’t a magical bail-out, and it demands that you be a responsible spender. In this blog, we discuss some of the spending behaviours you should steer clear of once your cash advance loan is approved.

1. Buying Take-Out When You Can Cook What You Already Have Instead

The choice between buying food you can cook yourself versus restaurant or fast-food should be a no-brainer. The homemade option will always come up cheaper and more sustainable. If you need a payday loan, chances are you can’t afford the leisure of eating out at that point. Rather save up and when you’re back on your feet you can enjoy the treat guilt-free.

2. Splashing Out On Expensive Clothes

If your problem with your wardrobe is that you don’t like anything in it, you don’t strictly need to buy new clothes and can afford to wait. You can always buy clothes at a later stage, with your disposable income. There’s more to life than wearing high-end, branded clothing.

3. Paying For Recreational Travel

The first thing you should do if you want to travel is planning. This includes everything from logistics to finances. Don’t use a payday loan to go on vacation. However, if an emergency trip springs on you when you don’t have the money, it’s a different story altogether.

4. Taking The Entire Sum Of Money With You Everywhere

New Zealand is ranked among the safest countries in the world, but that’s no reason to take a chance on your luck. Theft is a real thing, and mistakes do happen too. Rather than travel with your entire loan in cash, keep it safe in a bank or only take the exact amount you’ll be needing.

Payday loans are a great way to bridge financial gaps, but make sure you never abuse them in your time of need. Looking for an NZ lender you can trust? Call Cash Relief.