Saturday, August 17, 2013
Why Should You Stay Away From Payday Loans
A little hard work and spending wisely can save you from falling in the clutches of payday loans.
Here are some reasons how you can stay away from payday loans:
Paying off Debts in Time
You can always maintain post-its on your fridge to constantly remind you of the expenses you have to pay off. Keeping track will help you cut down unwanted and unnecessary expenses. This will help you to manage your budget, in return helping you to take no additional loan.
Extra Source of Income
If you can think of a way to earn some extra money every month, this will help you in paying your debt payments. If you are good at arts or crafts, try selling your work online. Your talent and interest in something will definitely help you earn more money.
Minimal Use of Credit Cards
Credit cards can look helpful, but they actually lease you money for some time. Credit card payment delays result in high rate of interest, and you end up paying more than you have actually spent. Keep credit cards aside, if there is no need.
Understanding Your Debt
Debt is a problem. Creditors are here to lend you money for an unexpected expense. But, if continue to opt for payday loans for clearing your other debts, you are landing in trouble.
Interest Rates on Your Debt
Whenever you are applying for a payday loan, you must understand that the help for money comes with a huge interest rate. If you do not pay the loan amount in time, you will fall in an endless loop of debt.
Additional Fees you should be Aware of
You will be charged additional fees in cases of spending more than your limit, overdrafts or paying late. With payday loans, this fee will come as a surprise package if you fail to pay on time. This will ruin your chances of clearing off debts on time.
Just Paying Minimum Amounts
If you think that you will get rid of the payday loan by paying in small amounts, you are wrong. You have to return the complete amount with interest in one time or as per the creditors guidelines. If you plan to pay in breaks, you will be charged more.
If you have started second income plan, this does not mean that you should upgrade your lifestyle as well. You should be able to keep and manage finances only if you control your expenses.
