1. Dealing with the unknown
In the course of a financial struggle, it is very common for people to lose sight when looking for finance. Some people blindly end up borrowing that they need, and spending it over a short period of time, or borrow from the unknown. The 'unknown’ is a broad word, but typically these are telemarketers, websites that are unreliable, and sometimes legal business with terms and condition that ends up hurting out financial positions in the long run. You will come across these people whether you like it or not, and the only thing you can do is a due diligence before you enter into any form of contract with anyone. Check their online reviews, let them follow proper channels if you can validate their information through official channels, and don’t get any loan without understanding the terms involved.
2. Avoiding third party lenders
Payday loans can be very helpful especially at times of emergency, but there is one terrible mistake that many borrowers make in the course of looking for payday loans; using third party lenders. A third party lender is a middleman of an actual lender, and they earn a fee from the loan offered by the original lender. At first, they may seem convenient and advantageous, but you may never know whether they will use or pass your personal information to other interested parties or not. If you desperately want a payday loan; get it from the direct lender, avoid these 'middlemen’ as much as you can, since it's mostly likely going to lead you to financial troubles.
3. Accumulating debts too quickly
Borrow what you can afford and pay what you can afford. Of course, no one will force you to pay more than you can afford, and no one will dictate what you can afford, but do not accumulate debts too quickly even when you are pretty sure you will be able to pay. If paying you payday loan means you will be short of money, why not consider canceling the continuous payment authority?
No one is immune to money pitfalls, but with careful planning, avoiding engaging with the unknown and avoiding unnecessary debts can help avoid or minimize these pitfalls quickly.