Tips for avoiding payday loans.
Times might be tough, but they could always be a whole lot worse. Job cuts, salary cuts, and high unemployment are all casting a bit of gloom on our world these days. The best part of all this is that you can be prepared for most of this. You can even avoid the temptation to hit up a payday loan service.
Live within your means
Marketing has us all fooled that we need big homes, exotic cars, and big fancy TVs. This is really all a farce. Trying to live up to what television marketers tell us we need is a quick trip to get a payday loan to go buy that new shinny item.
You might be approved for a $200,000 home. Should you really spend this much on a home? No! What the bank says you are approved for and what you can really afford are two different things. Taking the full mortgage amount means you’ll be scrambling for a payday loan when the water heater blows.
Big homes and big cars all cost big money. Big cars cost more in maintenance and fuel. Big homes cost more to heat and cool. It is not your job to keep up with the neighbors down the street.
Build an emergency fund
The first thing anyone should do is get $1000 into a savings account. Leave that money there. This cash should only be hit in dire emergencies. Your MP3 player biting the electronic dust is not a dire emergency. It is also not a reason to grab a quick bit of cash from the payday loan palace. Save up and get a new mp3 player when you can pay cash from your pocket.
Next is to save up three to six month’s worth of expenses. Start tucking away money into a savings account. You can use this if you are ever laid off. Wouldn’t it be nicer to find a job you want instead of taking the first thing that comes along? Having three to six months of expenses saved up will allow you to do this.
Have a yard sale
You need a quick bit of cash to pay the light bill. It happens. Should you go get a payday loan? Nope. What you could do is have a yard sale.
Are you really going to use that third blender you have sitting new in the box in the attic? Sell that for a few dollars. Even in the dead of winter, you can have a yard sale. EBay is open all year long and it is warm in there. People are always looking for a deal. Selling off your unused items is a quick and easy way to avoid the payday loan office.
Some preplanning now can go a long way. Avoid the temptation of a quick payday loan. It is always a lot of work to look over finances, but it is necessary more than ever these days. Get that emergency fund going and you will find a whole lot of stress goes away. I dare you to try it and see.