Before you consider using a loan from one of the many online direct payday loan lenders, you will want to make sure you give the whole borrowing process some thought. One of the biggest problems in short-term lending today is when a borrower doesn’t plan for the payoff just a few short weeks later.Affording a loan does not necessarily mean that you have the money for it. It is important to keep all of your other costs in mind prior to signing for the loan. In its efforts to help educate the public, the government created a ‘quiz’ to test your borrowing knowledge. It’s a little questionnaire which makes you think about whether or not applying for a direct payday lender’s loan is going to help you. In fact, this little quiz could help you with any type of loan. When your income struggles to afford everyday costs, adding the price of third party money often spells trouble.Are you aware of how much of your monthly income pays the cost of interest for other types of loans or outstanding credit? If you are spending 20% of your income towards other debt (not including a home mortgage) than you are spending too much. There are many differences between credit card debt verses obtaining a loan from a payday direct lender. The difference between interest charges is in affordability.*A credit card’s interest is often much lower than a short-term loan lender’s. With more and more people falling deeper into debt and have seen a dip in their credit have also noticed their credit card interest charges increase. The creditors no longer keep their interest separate. You could make a late payment on your car loan and see your credit interest go up. Once a negative money management report has been sent into the credit bureaus, it becomes public knowledge for any company looking in. Creditors will use that report as a sign of what could happen. Your debt becomes risky and the interest shoots up. The new interest will affect your previous balance. High interest is not affordable.*Direct payday lenders charge high interest for their short-term loans. There is a definite business practice behind this cost which is not based on taking advantage of customers as some people would like to think. Short-term loans are supposed to be paid off within a few weeks of obtaining the cash; there is not much time for a business to collect revenue. Short, quick and to the point. Most creditors will earn more money off their customers over a slow long drawn out process of month to month payments.*Customers have options. You can choose a credit card based on the offered interest, but once the card is open, the creditor is free to raise the cost at their will with only having to give the person written notice. People have the opportunity to shop around for a best direct payday loan lender as well. Once you find a responsible one, the interest remains the same as listed on the contract. Because these loans are short-term, there is no incentive to keep the debt for much longer. In fact, the high interest suggests a fast payoff. Just remember, with any loan or credit, the longer it is left unpaid, the more interest you will pay – affordable or not.* If you already have credit card debt lingering or an unpaid short-term loan, do you really want to get further in debt? Just because you have the opportunity to borrow money, is it best for your current financial situation? No matter what your interest charges are, the money will need to be returned. Will your income afford the extra cost? How will this new payment affect all other budgeted costs?It never hurts to find out more information about loans, credit, borrowing, interest and general money management prior to taking on more debt. It is important that these direct payday lenders online and credit companies are used for emergency needs rather than increasing spending power.