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Money Management

Don’t Make Payday Loans a Scapegoat

Payday loans are the fastest way to get cash before your payday and the best way to get financially ruined in no time. People often forget that any money borrowed from a payday lender will generate high interest rates that summed up to an already existent debt, make payday loans a heavy load to pay off.

If you are already trapped in a debt circle resulting from credit cards, mortgages or another type of loans, you do not really need to add a payday loan to this circle, but find suitable alternatives for your imminent money need. There are at least four alternatives to a payday loan that might be the answer to you are looking for, so simply analyze them and decide yourself which is the best in your particular case.

Negotiating

The most viable way is talking to your creditors and asks the possibility to extend your due date. Okay, you need money, not refinancing or similar thing, but this way you can take the money that you reserve to repay your debt, assuming that you have this money available in a savings account or somewhere at home. There are two possibilities here; on the one hand that you really need the payday loan to repay other debt. In this case, a creditor can extend the due date without reporting to the bureau or charging a penalty for late payments, thus removing the need to get cash advance. On the other hand, you might have never thought to put aside any money to repay your debt, living on a paycheck to paycheck basis.

Credit Cards

However there is a second alternative here, as long as you need the money to buy something or that your credit card grants you access to cash advance. Yes, using your credit card to pay for items is cheaper that borrowing money from a payday loan. However getting a cash advance from a credit card (when allowed) is costly than paying for goods at the time of purchase, although both of these solutions into one financial instrumental will always be cheaper than a payday loan, and some banks give a few days grace period to repay cash advances before interest rates apply.

Family or Friends

The third alternative to payday loans is not always suitable and not always impossible; which is to borrow money from a family member, friend or even your neighbor. Perhaps this last thing will only give you nothing more than a few bucks, but sometimes a few bucks can make a difference. However family members or friends may have your money solutions in their hands and it is about daring to ask them. The main advantage is that they may lend with no interest rates, but there is a risk factor involved here. Money is often responsible for broken relationships, so if you are unsure of your financial capability to repay their money in a timely manner, you will do better select another alternative. Be honest about your financial situation when talking to them and never promise without having the certainty on what you are saying.

Reevaluate Expenses

Perhaps the fourth alternative is the best of all of these; cut down on your bills. Depending on how much money you need, you can cut out some services that you do not need, or you can delay the payment without being reported to bureau if your delay does not exceed past 30 days. If you cannot live without paying your carrier the extra module that enables you to text your friends beyond the limit of you cell phone plan, for instance, then try to cut out the amount of beers that you drink. Tighten your belt for a month or two will not hurt and can give you the extra cash that you need, or can be an “extra” income if you keep reducing expenses consistently.

There are several other alternatives to payday loans, but these are some of the easiest solutions that you can find.

Author Bio: Noel Finlay works for FastCash.org a company that provides information on quick loans. 

Money Management

Recovering From Holiday Personal Finance Mistakes

The holidays are over. Did you stick to your personal finance goals? Now it’s time to look at your finances and your holiday spending and evaluate how you did. Some of you will find that you were able to navigate the holidays successfully. Others will find that they used those credit cards or spent more than they should. If this is the case, now is the perfect time to start recovering from those mistakes.

Figure Out what Went Wrong and Plan for Next Year

If you did make some mistakes this year, figure out why it happened. Maybe you didn’t save enough during the year to cover your holiday expenses or maybe you bought things that you shouldn’t have. What will you change next year? Should you start saving now for the holidays? Take this opportunity to learn from your mistakes so that you can have a financially successful holiday season next year.

Create a Debt Elimination Plan

If you did use those credit cards, now is the perfect time to start thinking about how you will pay them off. Look at your budget and determine how much extra money you can use towards debt repayment. While you may not want to shave $100 a month off of your entertainment budget, this might be what you have to do to fix your mistakes. Remember, moments of indulgence will result in years of repayment and sacrifice.

Think About Returns

While no one wants to think about taking back holiday items, it is possible that you could make a few post-holiday returns to remedy your situation somewhat. While you can’t return gifts you gave out, you can consider returning items that you bought for yourself or your immediate family that you can’t afford. While it might not be fun to part with that new game system, it might help you learn to think before you buy in the future. Is it really worth paying 30% interest on something that you don’t need?

Now that the holidays are over it is time to start thinking about the future. Learn from your mistakes and pick the pieces if you did make mistakes. It is never too late to turn a new leaf and start making better financial choices.

Money Management

Where To Find Wealth Management Online

Finding personal wealth management online is easy to find. But you’re going to want the best finance management software to make sure that you stay on top of your wealth and grow it exponentially.

The most important part of your personal wealth is knowing where your wealth is and what you have.

I stumbled across Personal Capital and their free software that does just that. You can see all of your accounts in one place, make better decisions with your wealth, and get objective financial advice from some of the best financial advisers in the industry. This is all free at Personal Capital.

Go try it out now

Money Management

Life’s Little Surprises

While a budget can help you keep track of daily expenditures and monthly expenses, it can do little to prepare you for the many surprises that life always seems to bring. At some point, the car will break down, a job will be lost, illness will strike or some other surprise will rear its financially devastating head. Since you don’t know what surprises your life will bring, it can be hard to plan. Here are a few tips to help you prepare and handle these financial surprises when they do strike.

Get Out of Debt

Probably the most common theme on all personal finance sites is the great need to get out of debt. If you aren’t spending your monthly income on debt, you will be better able to handle unplanned and unexpected expenses. Start paying down your debts today. When trouble does come, it will be easier to borrow money if necessary if you aren’t already buried in debt. Additionally, you will have more money to save each month if you aren’t spending it on interest and fees. Make a plan and stick to it and start working on eliminating debt.

Make Sure You Have Enough Insurance

You can avoid some major financial disasters by simply having enough insurance. Make sure that your insurance policies are up to date. Also make sure that you have enough coverage. Insurance costs a little each month, but is a lot easier to pay than one huge expense down the road. If you want to protect yourself from surprises later, get health, life, car and home (or renter’s) insurance today.

Stock Up

You also need to build a reserves whenever possible. Have a little extra money in your bank account, a little extra cash in your house and some extra food in your cupboards. If you have a little more than you need now, it can help sustain you when times get tough.

Plan for the Future

Life is uncertain. However, you can plan and minimize your risks. What would you do if you were to lose your job? Do you have a backup plan? What skills could you learn now to help you in the future? If you can learn to do a job on the side or get a little more education, you may be better qualified for future positions later. Come up with a backup plan and have ideas in mind if your situation should change.

Surprises will happen; plan for them. These ideas will help you prepare for the many financial surprises that wait in your future. Remember if you don’t plan ahead, you are just asking for trouble.

What ways do you prepare for life’s little surprises?