I can never stress enough at just how important affordability is on finance. If someone is unsure whether any finance is affordable or they know that it is not then no application can then ever be submitted to any financial lender. Failing to have this affordable could lead to such commitment payments being missed and for most people this will always have severe negative consequences. It will not matter whether someone is looking to apply for short term payday loans or possible instalment loans for higher amounts if a type of loan is required. Credit cards as well as mail orders are other commons of borrowing but all of them have to be affordable for a person to manage. Below is information that can help determine whether finance is affordable but also I will explain how some borrowing is more affordable than others.
If someone can locate what their disposable income is on average on a monthly basis then this can help people decide whether or not finance is affordable. People can use this amount to see if any new borrowing repayments can be taken from that figure and then that person can still repay their other financial commitments. Locating the amount itself is easy, someone can just look to any month ahead and then they can simply add up all their income expected for that period. This can include their work salary plus any benefits they are due to receive etc. Then from that amount the same person over the same time frame can then look to deduct their monthly expenditures for that period. This can then include their mortgage/rent payments, transport and food costs can also be deducted as can any debts the person may have etc. Then once that full calculation is then completed the amount left over is the disposal income. If this amount is then then it is likely further finance will be affordable however, if low or if it will not cover something due then no application for short term payday loans or other finance can then be made.
It is likely that some borrowing types are more affordable and realistic for someone to repay than what others are. That is certainly something to bear in mind as some people may need to borrow finance yet they will see that some may be more suitable to their financial situation than what others would be. Take short term payday loans as a borrowing example. Like other payday loan borrowing, when these are obtained they are repaid back in full with high interest added just as soon as they are paid again from their employer. For a high number of different people repaying any loan back in full as well as their other bills, this may not work out to be affordable. Other borrowing may then be a better solution. For example other short term loans could help as people may still be able to borrow similar loan amounts but people can then repay the debts over a longer time frame. This makes it more affordable and realistic for a high number of borrowers to then repay the debt.