3
Jul

How Beneficial Is A Payday Loan

hyyWhen you are in a difficult financial situation, you might not have the time to approach your financial institution and have a loan processed as fast as you need the money. If you are the type that does not like to bother other people with your problems, you might also not find borrowing the money you need from friends and family. A payday loan can be your ultimate solution in such situations.

The payday loans are short terms small loans that are processed fast to cover your emergencies and then you get to repay them as soon as your salary reflects. They save the day when you need money and your paycheck is still days or weeks away. The loans are very popular and they come with a number of reasons that makes them beneficial in those financial situations that really cannot wait till your next pay.

1. A payday loan is beneficial in the sense that it is very easy to apply and have a list of requirements for you to qualify. The only thing you might meet need to show is proof of income so that the lender is sure you will manage to repay as agreed.

2. The loan is super fast in terms of processing compared to applying for a bank loan and waiting for processing. As soon as you fill out the needed application, you get the cash advance that you have applied for in a matter of seconds. Most lenders will never go past an hour after your application is approved. This means that you can even take care of emergency situations within no time at all when you choose a payday loan.

3. A payday loan offers you payment flexibility, making it possible for you to settle it as soon as you get paid. You do not have to keep up with loans that take longer to repay and attract interest rates over that repayment period they stretch over.

4. With a direct payday loan, you are less likely to default. This is because you get the amount that is sufficient enough for your income to cater for. A cycle of debt is eliminated by the payday loan since you are sure that the amount you expect from your next check will actually cover the loan you have received. It is a fact that protects you from debt and keeps your lender protected as well.

5. A payday loan can be termed as convenient considering that most lenders work outside the regular banking hours. It means that you can obtain the emergency cash that you need at any time or immediately the financial situation arises. Most of the lenders actually make it even more convenient for you by offering online services where you can apply and have your small loan processed without moving an inch from where you are.

6. A payday loan is very discreet making it very good for you if you do not want to let anyone know about your financial woes. The fact that it is processed fast makes it possible for you to avoid borrowing from people you would rather not let know that you have some financial issues such as family members and friends. The loan allows you to handle your issues personally and in total discretion if this is the route you find most appropriate for you and your finances.

27
May

Would Payday Loan Usage Set Off The Debt Crisis Alarm?

ddBefore you can dig yourself out of a debt crisis, the problem must first be acknowledged. At what point you discover the problem will determine how hard you will have to work to correct it. Whatever the case, debt problems deserve priority treatment. Money troubles will not voluntarily correct themselves.

Watch for the signs.

Savings – There is very little money in the savings account. The risks increase further with no savings account at all.

Credit Cards – How much of the credit limit is owed? If you have used or almost used up your credit limit, you have a debt problem to fix. Pay attention to the interest rates on each card. There is more money to save in the long run if you attack the higher rates first.

Juggling Money – Do you select which bills get paid each week? Household needs get priority, but how long do the others have to wait? Are you getting charged late or overdraft fees because your paycheck didn’t cover all the expenses that pay period?

Alternative Loans – Have you taken out at least one payday loan or cash advance from a credit card in order to pay a priority or other debt bill? Both of these options are expensive. If these loans are your only source of help for emergency costs, the debt crisis is an advanced problem.

Debt Load – If your total debt (minus mortgage) is 20% or more of your monthly take home income, it’s a problem. A budget can usually handle 10-15%. This amount does include the car payment. Make sure the cost of the car will not jeopardize your finances.

A good working budget will easily include a home, vehicle, utilities, gas and food. If the budget does not cover these bills, plus something extra for savings and other unexpected costs, you are living an unaffordable lifestyle. Find areas to cut back on and redirect the financial problem before it becomes a disaster.

– Stop using payday lenders completely. Even if it takes you another month to pay off the debt, do it. It is a lot of money every few weeks that your budget needs elsewhere.

– Hide the credit cards until you can get the debt paid off or at least paid down. Don’t cancel them unless you absolutely have to. Cancelling cards will hurt your credit score in a different way. If you must, cancel more recently acquired ones since longevity is favored by the credit bureaus.

– Would your budget run smoother if you traded in your car for a cheaper model and lower payment? How about a model with better gas mileage? Less expensive models cost less to fix than the fancier counterparts. Look at long term costs when purchasing a vehicle.

– Do you need to downsize your home to fit the expenses into your budget? A smaller home will help to lower monthly utility payments as well. Don’t forget to look for neighborhoods with affordable property tax rates.

22
May

Growing A Garden – Saving Money – Paying Off A Payday Loan Lender

x3Can a person really save money and payoff payday loan lenders when growing their own food? It will of course take some hard work and patience waiting to see the fruits of your labor (pun intended!) but in the long run you will see a significant savings in your grocery bill. Not too mention the personal satisfaction you will have when you are able to eat fruits and vegetables right from your own garden.

Start out by taking a critical eye to your current finances. It is most likely that you can make cuts to your grocery budget. Most people can when they stop to think about how much they are spending and what they are buying. Spending less at the supermarket, paying off a payday loan or simply saving money for a rainy day are great reasons to consider growing your own food.

Saving money by starting a garden can depend on many factors. The first is the climate of where you live. Harsh winters (and even spring) can make growing your own food difficult but if you live in a subtropical climate like Florida and many parts of Texas, you have a great chance of growing and maintaining your own garden. All you need is some seeds, a a few gardening tools, and the right space to plant. Stocking your fridge with your own fresh food is one way to payday off your payday loan lender and save the borrowing for a true financial emergency.

First decide where you are going to build your garden. You need not have a big back yard to do so although the more space you have, the more you can plant. But in reality, it only takes a few square feet to get started. It is an option to create a vertical garden which means you will grow your plants in containers. Garden centers and home improvement stores are filled with isles of equipment and supplies to help you maximize the space you have to work with.

Next, find out what grows best in your location. Think about what fruits and veggies you have enjoyed living in your area. Different seasons will determine what you can plant as well as “zone” you live in (you can find that in a gardening book or on the back of the seed packet). If you are set on growing plants that aren’t supported by your area’s climate, you can always build a greenhouse if your resources permit. This can get costly though and remember, you are trying to save money. Don’t go out and borrow with a payday or car title loans just to build a greenhouse. That will defeat the purpose of building a garden to save money and payoff your short-term payday advance.

You may consider planting fruit trees if space allows. Not only do they provide shade in the hot season but you will be only steps away from delicious home grown fruit. Be patient, fruit trees need time to grow and some may only bare fruit every couple years. You will see a significant savings to your grocery bill, though, once you can cross fruit off your shopping list. You can also do this with herbs and seasonings as these can get costly to buy fresh.

Growing your own food is not by any means an easy task but is one that is not only healthy for you and your budget, but can be personally rewarding for you and your family members. Get your kids involved and make this a project you work on together. Take it a step further by learning to can and/or preserve your own produce. Having the space to store your canned items means you can have future gifts for others, a food supply for emergencies, and the opportunity to sell at a farmer’s market in which you can turn a profit. Farmer’s markets and food co-ops are very popular now being a means of providing healthy and organic fruits and veggies as well as saving money and becoming a home-based business for many growers.

You may discover that your green thumb can save you a great deal in groceries as well as becoming a source of income for your finances. This will allow you to repay your payday lender as soon as possible and see great savings at the grocery checkout counter

22
May

Fast Payday Loans VS. Credit Cards

saWhen finances get tough and you need access to credit, which comes in the form credit cards and Texas payday loans, emergency situations don’t have time to wait for traditional bank loans or lenders. They often take their time running your credit and making you wait for approval. If you need fast cash and don’t have a lot of time to spare, don’t make financial decisions in haste. Take some time to consider the advantages and disadvantages of how you will acquire the money you need and then decide which financial route you will take.

The first thing you need to consider is whether or not you have a credit card and if so, does it even have any available credit? If the answer to either question is “no”, then this is not an option for your particular situation. If you are thinking about applying for a credit card to help you deal with your financial fix, keep in mind that it could take weeks to get approved and get your card in the mail. A financial emergency may not be able to afford that much waiting. Even so, you may not get approved for the amount you need, putting yourself back at square one with your cash crunch. With an overnight payday loan with Approved Money Center, you can apply online in minutes and get approved the same day. Your money will then be deposited directly into your bank account on the following business day. No waiting- no check cashing- no driving around town.

You need also consider that when you use a credit card, it may end up taking months to pay it off which will cost you a lot more than you needed in the first place. Interest charges can really add up and if you are late on your payment(s) you will be charged a substantial late fee as well. Payday loans are meant to be utilized for short-term and temporary financial times, paying them off when you get your next paycheck. You will still be charged a fee for being able to borrow but once you payoff your initial loan amount and fees, you will be free and clear of your payday loan debt. In the event that you can’t payoff your loan in full, most lenders will work with you.

In the event that you have enough credit available on your credit card, make sure you can use that card for your emergency bill. Some auto mechanics require that you pay cash for repairs. Certain vendors don’t take plastic credit because credit card companies charge business’ high usage fees. There are other circumstances that may call for cash. While you most likely can take a cash advance on your credit card, be mindful that you will pay an even higher interest rate on the money you borrow as well as any fees that may be charged for a cash advance transaction on your credit card.

A payday loan lender will never charge you more because you need the cash quickly nor should any lender ever ask you for any money up front in the form of fees or an application charge. Take a moment to work the numbers and figure out just how much it will cost you to borrow these two ways: a short-term payday loan or a credit card cash advance. Which one will you be most likely to pay off sooner? Which one will cost you more? Figure that out first and then make your decision.

While you may have a much lower interest rate on your credit card, you must be realistic about how long it will take to pay it off. If what you charge ends up being long-term debt, you can bet your going to pay quite a bit over the duration. If you can pay it off before the end of the billing cycle, you most likely won’t pay anything in interest charges or fees (except if you are charged for taking out a cash advance with your credit card). With a loan from a payday lender, you will be expected to pay back what you borrow within a couple weeks depending on your pay cycle. You’re are free and clear once you payoff your lender.

Only you know your budgets’ potential to pay back what you borrow. That goes for your financial tendencies as well. It’s best to consider how you deal with your finances and how disciplined you will be in paying back a credit card cash advance or fast cash payday loans.

12
May

Fighting A Budget Battle Successfully Without Payday Loan Help

y6Bad credit brings tough budget situations. When you don’t have enough to pay Peter, you rob Paul and then Stan comes in and needs his share while Tom is lurking around the corner. Sure we can laugh at the budget juggling routine. At the end of it all, without enough cash to pay them off, troubles multiply. When we don’t have enough money to take care of each one, we pay more in late and overdraft fees. Payday loan help will at least give you something for your money. It’s a bit pricey, but in the long-run it helps keep your bad credit rating from falling further.

If online payday loan help is such a good thing, then why not use it more often?

No one said it was good, just that it was better than the worst case scenario. The quick payoff is often the biggest struggle. The high interest is somewhat tolerable because the loans are short-term. Borrowers shouldn’t have to deal with long-term payments. At least they are not supposed to. Anyone who applies for one of these loans and knows it will take them a long time to pay it off had better find a better way to support their money crunch. It doesn’t make smart money sense to trap your finances into more debt. The APR on these loans is outrageous. Don’t fool yourself into thinking that a short-term loan is okay to keep out that long. You are throwing away income at that point. On top of it all, the finance charges eat at your income. You and your family are the only ones that should be eating off your hard earned money.

What do you do instead?

* Don’t spend a dime without it being part of the plan

* Limit the extras. If need be cut them out completely, at least for the time being.

* Don’t allow yourself to fall back to the online cash advance lender no matter how easy the process is.

* Don’t keep using credit cards… period. Use cash, checks, debit cards or preapproved credit cards if you must spend money. This keeps you using cash from the bank rather than borrowing for a price.

* Deal with the frustration rather than give up. The debt is not going to go away, at least not without added troubles. You don’t need collectors to add to the mess. Pay back your debt.

Can’t decide which debt to tackle first? Put all your efforts into the one that costs the most. The highest interest rate will most always point you towards cash advance loans first. With high interest and short-terms, these loans will create the most budget damage if not paid off quickly. One those accounts are settled, move on to credit cards. Line them up in order from highest interest to lowest and use the balance to break a tie. As you see the budget demand decrease, start building an emergency savings account. The money set aside can be used for emergency costs or to start saving for more mid-range needs like repairs or replacements… Eventually, you will focus your attention on retirement and college funds. At this point you will have forgotten what it is like to live paycheck to paycheck.

Gone are the days of bad credit consequences. No more high interest loans, credit cards or refusals. It will feel good to have choices. You will be able to go into a bank and get a regular bank loan with low interest. It’s a good day when money help is no longer a struggle. Much more inexpensive too! Start attacking your money troubles today. Your future finances will be glad you did.

27
Apr

What Is Life Without Payday Loan Companies

g6Life goes on even if payday loans will cease to exist one of these days. Our forefathers lived with their lives without it. In this current situation, where conditions are volatile and make every one vulnerable to its effects and consequences, people should clearly have other options to solve their financial problems other than the usual payday loan or cash advance service. But or the sake of discussion, let us suppose that the U.S. Federal government finally has decided to outlaw these types of companies. What happens then? Here are some possibilities.

  1. People will need not march on the streets to recreate situations similar to Occupy Wall Street. But they will definitely appeal and ask their representatives to lobby for reinstituting this type of credit. It is also highly possible that in some countries, credit companies of this kind will be forbidden as well due to reports of exploiting the poor and the fact that some agencies will actually lead people to sink deeper into credit pits instead of alleviating their monetary predicaments.
  2. People will suffer financial problems with not much hope of payment because they do not have easier options when it comes to borrowing money. Due to worsening economic conditions in some states and countries, banks and other lending institutions will implement more rigid rules on credit application and more people will not have access to it. As a result, more people won’t be able to pay their bills, solve emergency financial crisis, and end up with bad credit ratings.
  3. One positive development when this scenario happens though is that people will be more financially conscious and find ways to make ends meet. In other words, they will tighten their belts further. They will resort to budgeting and savings to tide things up monetarily. Some will give up an expensive lifestyle or habits and reduce spending on unnecessary items such as junk foods, fashionable products, and sleaze magazines, among others. Many will also make necessary adjustments in order to cut down on gas such as commuting, biking, walking, or car pooling; lowering utility bills by lessening consumption of water, electricity, and the like; and cutting down expenditures on night outs, shopping, dining out, and travel.
  4. Others will be forced to use their creativity in terms of preparing food and recycling wearable clothes. Yes, recycling will be the order of the day. And with proper ingenuity and creativity, people will make use of their old properties and even personal belongings and reinvent them to accommodate new functions and uses. In addition, garage sale will be frequent in the neighborhood to earn more money and get rid of useless items stuck in the attic.
  5. Some people will apply for additional jobs with meager earnings just to earn extra money. While they previously spend idle time enjoying hobbies, without payday loans companies, they will use their time looking for ways to augment their income instead. In relation to this, a small home based business such as buy and sell online or freelancing through freelancer sites are good ways to earn additional income.
  6. Lastly, payday loan providers will not be deterred. Expect that a few days after the laws are enacted, they will still be back in business, and this time with another term to use for their services. They will innovate usual service description, rename their business, change the features, and redo processes, among others. Definitely, it will be the same dog but with a different collar.

It is really not easy to imagine a world without credit, specifically from payday loan companies. As mentioned above, people will be affected but there will be always negative and positive consequences. Adjustments will be made not only with people’s lives but with the whole credit industry as well.

25
Apr

Some Great Tips to Help You Save

h66Increasing numbers of families are changing their spending habits and starting to save. If you have not been a saver in the past, it can be a difficult thing to learn. However, savings can do many things for us over time.

Savings will improve your standing with your bank, and they will help to improve your credit rating. It may not be fair, but the truth is, if you have savings, it is much easier to access credit! Savings also give you more flexibility when emergencies crop up or if a sudden purchase is needed.

The problem for many people is that they don’t feel they earn enough to be able to have a significant amount. The truth is we all spend some of our money on unnecessary items. While no one would expect us to live a frugal fun-free life, it is important to make our money go as far as possible.

Even £50 per week over time can build up to a significant amount of money. Here is the best piece of saving advice we have seen to help people and improve their personal finances:

Manage your wages effectively

For millions of people, the wages always run out before the month does. This is not always because they don’t earn enough money, sometimes it is simply down to a little bit of mismanagement. The problem is how you use your money when you are paid. Most people will pay all their monthly bills as soon as they receive their wage, and then have a splurge on whatever else they need, that they have been waiting until payday for. The problem with this approach is that it is easy to over-spend and end up with nothing left only a week after payday. We know some instances where individuals have had so much to ‘catch-up’ on by pay day they literally had no money left the next day. This is an extreme case of money mismanagement!

Put your utility bills on direct debts and create an account for all your regular monthly outgoings. Move the right amount out of your current account as soon as your wage is paid. This will help you to see clearly how much money you have left and keep the money for ongoing bills away from your regular current account activity.

Once you have done this the amount you have left should be split into four for each week of the month. It may sound simple, but it really is the only way to get back on track and start getting used to managing on a set amount each week. It’s easy to feel well off after payday. The problem is that it creates a ‘boom and bust’ existence which plays havoc on your credit rating, can result in debt, and huge amounts of stress, because all you end up doing is juggling money every month, it is no way to live.

For the first few months you may feel a little hard up for cash, but you will soon find that you get used to it and are able to get through to the end of the month without any problems.

This is exactly when you should start saving! It is a great opportunity to add a small direct debit for an amount to be saved and put straight into a savings account each month. Don’t let yourself get used to the higher amount. Be strict and stash the cash.

For example an employed person earning £2,000 per month will have £1,000 outgoings each month for utility bills, rent, food, fuel and other direct debits. That leaves one thousand pounds, which is £250 per week. Instead, they could save £50 per week, leaving £200 per week and saving them an annual amount of £2600.

The feedback from hardworking people who have tried this approach is simple; there is no doubt it works!

Time flies, and life moves on at a pace. It is amazing, once you get into a routine, in just five years £2600 turns into £13,000, and it would be more than that if you had been using a high interest account. What could you do with £13,000 right now? Think back five years from today. If you had started saving then, you would have that sum right now.

Don’t waste time, start saving straight away. You will never regret it and no matter how much you manage to save, it will be an amount worth having.

11
Apr

Benefits of Payday Loans

g6aNext time you are in dire need of some cash, and you want to get it quickly, you can consider payday loans. This type of loans is relatively new on the market.

So far, the traditional ways of procuring a loan were mainly through credit cards or by applying for personal loans. Certainly, these are well accepted and appreciated options for anyone, but they do come with their own limitations. When using credit cards, you are prompted to spend a lot more than perhaps you could afford. In fact, they were designed exactly for this purpose, as they allow you to pay a specified minimum amount, and thus extend the payment of your dues for a long time to come.

This design works to the benefits of the companies that issue credit cards, as they keep earning interest on the late payments made by you. Personal loans generally make a better option, but qualifying for such loans is quite cumbersome, needing a lot of time and a detailed check of your credit score before any answer is given.

This new product comes to the rescue of people who are unable to qualify for credit cards for whatever reasons, or who want to avoid the hassle of getting one. Though the reputation of payday loans is bad, they make a good substitute for traditional lending. They are highly popular with certain sections of our society. Here are the main benefits of payday loans:

  • The process of getting a payday loan is very easy, comfortable and fast. You may apply for a loan and expect the funds to be in your bank account in a matter of hours. No traditional bank can match that speed of sanctioning a loan. This is possible due to the online procedures for getting and disbursing the loans. The borrower simply needs to fill up an online application, giving some personal details, and then wait for the loan that will come through very soon.
  • Since these are short-term loans, you don’t need to face the problem for a long time. These loans are meant to help you overcome your financial problem for a short time. It is comforting to know that you won’t be under debt for long. However, most people tend to believe that you’ll land up in a big mess if and when failing to make your commitments; you should know that this is not true most of the time. The lenders offering payday loans do realize that there will be some defaulters, and they have accordingly designed their plans. Instead of taking any other action, they will just ban the client from utilizing the facility in the future.
  • Your chances of getting a loan from the businesses offering payday loans are certainly higher as compared to other financial institutions, like banks. The reason is that payday loans are available for small amounts of money, for shorter periods of time. Since the lenders realize that the associated risks are small, they can provide financial assistance to a larger number of consumers.
  • All the terms of the loan, including the fees and the interest to be charged by the lenders are clearly stated beforehand. So the borrower is well-informed on the amount he is liable to pay back. There are no hidden charges. This business is now highly monitored and controlled due to the bad publicity it has received in the past.

Perhaps, now you can better appreciate the reasons that prompt people to patronize payday loans. Their benefits include easy and quick availability, and if you realize how to best exploit these loans, you won’t be scared of utilizing them.

11
Apr

Conditions and Process of Getting a Payday Loan

88Payday loans are usually high-interest, short-term loans designed to bail out people until their next payday. Therefore, borrowers have until the next payday to pay the loan plus interest. Nevertheless, some of the lenders allow their customers to determine the most appropriate repayment period. When a person applies for a loan, they can get between $50 and $1,000, which comes handy for people who are in need of cash. The loan offers easy money fast to take care of minor, but urgent emergencies. This type of loan is often facilitated by a payday lender, which is basically a company that specializes in convenient financial services, like utility bill paying, foreign currency exchange and license processing.

· Conditions for payday loan

Payday lenders rarely get to check the credit status of the applicants. The expediency and privacy involved in applying for this type of loans makes it an attractive option for people with a poor credit. To qualify for a payday loan, you need to provide proof of being a citizen, above the age of 18 years and being in employment. Furthermore, the application process can be performed in less than 30 minutes and the money received in no time. If the payday lender does not hand the borrower a check when they apply, they can expect to receive the money deposited electronically in their accounts, within 24 hours. When you apply, you will see a very high Annual percentage Rate (APR), but you do not have to worry about this rate because it is calculated annually, and not weekly or monthly. This means if you choose to extend your loan 26 times from the date of repaying, your interest will be based on the annual rate.

· Process of getting payday loan

Payday lenders seek to capitalize on the weaknesses of banks. Therefore, an applicant can apply for a loan online or by phone. The application process involves submitting contact information, employments information and banking information. Furthermore, the lender can ask for contacts of a few friends and family members so that if the applicant failed to repay their loan, the references can be contacted to write up a check on the amount borrowed. If you are making your application online, you need to make a pledge to pay the loan by a particular date. Payday lenders often add a fee or finance charge. The lender then deposits the amount applied for in the applicant’s account or gives a check. When the term of the loan is up, the lender debits the customer’s bank account or cashes the check.

· Tips for taking a payday loan

If you are experiencing financial challenges, payday loans offer a viable solution to pay off your emergency utility bills, car repairs, medical expenses, etc. However, if you are facing a long-term financial challenge, you need to consider other options. There are many payday lenders available in the market. Therefore, it is advisable to shop around and avoid choosing an expensive offer. Furthermore, be careful and avoid borrowing more than you can afford to repay quickly.

The lender often holds the drafted check for a stipulated term, usually 2 weeks. When the term comes to an end, the lender debits the borrowers bank account or cashes the check. This helps to repay the loan, pay the interest and settle the lender’s fee. It is important to ensure you have sufficient funds in your account. But if you cannot afford to have the check cashed, you can always inform the lenders and he will be willing to rollover the loan to another term (often another 14 days), otherwise you could end up getting an overdrawn and expected by your bank to pay costly bank charges.

26
Mar

High Rate Loans – Pros and Cons

ccIf you do not know the term “Pay Day” or its variations, consider yourself lucky. At least financially.

The term “Pay Day” is a euphemism. Let us first define it for what it really is.

Payday lending is a form of short-term lending without collateral to people with little or no liquidity, or a bad credit rating. Pay Day is a generic term. Companies in this form of lending go by other names, such as Cash and Go, Advance Pay, Loan Up and Cash Carry. Sometimes these are also called Accommodation Loans or Instant Cash.

Whatever the name, here is a statistic to show how prevalent they have become in a few short years (probably last ten years) in the US. There are some 22,000 companies in Pay Day business, making $40 billion in loans and collecting $6 billion in interest and fees. This number may already be dated, since more companies are coming on line.

REASON FOR PAY DAY POPULARITY

Here are the reasons:

  1. As a business model, it is proven to be resilient and profitable. Diverse portfolio, small exposure, short term nature of the loan and catering to a sector few traditional lenders touch.
  2. With Americans’ incomes not keeping pace with inflation, and increasing illegal immigration, there is growing need for Payday type loans as more and more people live from paycheck to paycheck.
  3. While there is State level regulation on Payday practices, this form of lending is highly unregulated and as yet unchecked in any real form by Federal government. And State supervision is spotty. So no wonder new Payday type lenders are cropping up all over.
  4. Because of small loans and not much oversight, entry barriers are low.

PROS AND CONS

Pros:

  1. Easy terms, no collateral
  2. Negative credit history is not an obstacle
  3. Very local
  4. Caters to a segment of population which has no other alternatives to cover their expenditures or budgets

Cons:

  1. Very high rates of interest (although many States have Usury laws, so Payday lenders skirt it by calling these “fees” or “service charges”
  2. Addictive. Since money is easily available, there is less incentive to save and forgo certain expenditures
  3. Does not improve borrower’s credit history–whereas getting credit from a traditional source, even a store, and paying it down regularly will actually improve your credit rating and open up other doors to borrowing

WAYS TO AVOID PAYDAY

  1. Get in the habit of budgeting your income and expenses and do it conservatively. This will help you manage your cash flow and enable you to predict it—that way you can find ways to either boost your income or reduce expenses. It also will help you to prioritize your expenses
  2. Diligently note down your expenses
  3. Try to put internal limits on when to use a credit card. I advised someone to not use a credit card for single-shop charges below $25. It is amazing how quickly she realized money was flowing through her hands. She never appreciated this when flashing credit cards, and making minimum payments.
  4. Pay off all or most of credit card balance each month. Credit card companies are only a slightly softer version of Payday lenders.
  5. I prefer loan from a friend or from family although I realize it is not always possible
  6. Treat Payday as the absolute last resort, before bankruptcy. That will help you strengthen your resolve to avoid them as long as possible
  7. Get Credit Counseling. Like someone who wants to lose weight must seek professional help, if you are unable to balance your checkbook, you need to see a professional financial advisor.
  8. See if you have an asset that can be monetized. It may be jewelry you do not use or a house bigger than you can afford. This is the absolute first step to repairing your financial health.