Direct payday loans offer financial assistance when households are without their own emergency fund. There are some financiers who argue that most households do not need an emergency fund but should invest instead. A PEW study (2007) showed that only 34% of households experienced unexpected costs in the prior year. As much as I admire the research PEW studies do and the finding’s they report, I wonder what they consider an emergency to be.
For those people who live paycheck-to-paycheck and struggle to keep up with the rise in living costs, what expense is labeled an emergency?
Direct Payday loans help with unexpected costs.
- A trip to the dentist or other medical bills with no insurance can get pricey.
- A flat tire is an emergency payment, especially if the vehicle is used to get to and from work.
- No more sick days at work, yet your kids keep passing the bug back and forth.
- Anything related to children.
The list can go on and on. I always find that my extra costs always creep in just when I think I can get comfortable and relax. Sometimes it happens right after I treat myself for a job well done. Figures, right?
I look at it this way, if a household consists of home ownership and/or children, how do you not have unexpected costs?
Those who seek the help of online direct payday loans don’t have the income to support the extra. There is no room in the budget to build an emergency fund never mind start investing. The problem is not always wrapped around the short-term loan payoff, but the fact that these types of loans may not even cover the emergency cost.
What if the emergency is the air conditioning unit needs to be replaced at an average cost of over $3000. For those of you who do not live in the southwest, you may not see this as an emergency at all. No credit, no savings and no help from direct payday loans online will leave this household in a bind.
Of course, this type of expense does not happen to the masses; the potential of it happening and others like it cannot be ignored. Household budgets are being swallowed by debt without any additional expenses.
Where is the balance? If a person is living paycheck-to-paycheck, should investments be the priority? What happens to building a savings account to cover a few months of living costs? What happens to all the debt accrued over the years?
For situations which have no hope, there is bankruptcy, the last ditch effort to survive financially. For people who are still surviving because emergency costs of any magnitude have not hit, there are many different options.
Proactive approaches to fix household budgets may consist of consolidating debt or seeking out the assistance of a credit counselor. Those who include a desire and dedication to get out of debt will make it happen. For those who may not have such major problems or are still trying to focus on juggling their budget problems on their own, there may not be such large problems to overcome. With these instances, credit cards and direct payday loans online may be the stepping stones needed to boost success.