A Borrower’s Guide: How to Avoid Irresponsible Or Misguided Borrowing – What to Know

February 06, 2020

One risk of taking out an online payday loan is that incorrectly carrying out the process and using the loan can make your financial situation even worse over time. Although online payday loans are known for their convenience and effectiveness, they still come with their own set of pitfalls. 

The quick nature of online payday loans has made way for borrowers to take out varying principal amounts without the restriction of what they use it for or how they spend it. This creates a possible problem that can snowball into an even bigger financial problem.

Online payday loans are taken out for the sole purpose of getting immediate financial assistance for emergencies or obligations that have to be fulfilled. Although responsible borrowing is an unspoken rule that should be followed, the risk of misguided borrowing still persists. 

Irresponsible or misguided borrowing explained

There are various factors of misguided or irresponsible borrowing that most borrowers are actually unaware of until the situation becomes known. While some people may argue that a case of misguided borrowing is subjective, the harmful effects are objectively the same for everyone. Here are a few different instances of irresponsible or misguided borrowing to watch out for: 

  • Taking out a personal loan to pay another loan
  • Borrowing money to pay for a certain addiction – drugs, gambling, or others alike
  • Applying for an online payday loan on top of an existing payday loan with another lender

The nature of applying for an online payday loan makes it much easier to fall into a pit of irresponsible or misguided borrowing if you aren’t careful. Fortunately, you can easily avoid these problems by following a simple “TAC” protocol. 

The TAC protocol (and how you can apply it)

As minute as it may seem, the act of taking out a payday loan is actually a much bigger decision that most people deem it to be, which means you have to be extra careful during the application process. To avoid the possibility of running right into the trap of irresponsible borrowing, follow these quick and easy steps: think, abstain, and consult—“TAC” for short. Let’s go over each step in detail:


Seeing an advertisement for an online payday loan can easily lure anyone into taking out a loan that they don’t necessarily need. Though the interest rates are low and the payback guidelines are flexible and simple enough to follow, do you really need to take out a loan? Are you financially stable enough to pay for it on top of your other bills and obligations? 


By abstaining from an opportunity to take out an online payday loan, you’ll be able to create valuable time for yourself to think far away from the alluring appeal of an advertisement. The act of abstaining can help any possible online payday loan borrower from getting real with themselves. If you’ve thought about an online payday loan with a clear mind and still feel the need to borrow to fulfill a certain obligation right away, then you can move on to the next step.


Whether you do it with a financial advisor or a relative who has more years of life experience, consulting can help with forming a well-rounded decision on whether or not an online payday loan is for you. Bringing in another pair of fresh and objective mind can help with arriving at a final decision whether to take an online payday loan out or not. This step can effectively help with cutting out the possibility of falling into the trap of irresponsible or misguided borrowing. 

The problem of irresponsible or misguided borrowing affects millions of South African borrowers every year, pushing them further into the possibility of permanent financial ruin. Before you take out a loan for anything that you might need or want, remember to think, abstain, and consult!

Loans can be invaluable in certain circumstances. Whether you’ve fallen ill or need to replace a broken refrigerator in a hurry, a payday loan can be a game-changer. 

If you’re in South Africa and have gone through the steps above and still believe a loan is the best option for you, take advantage of our easy online loans and apply today!