Payday Loan Payoff
A payday Loan payoff is a ultimte goal. Most people have already realized that when our finances are in order, everything else around us, including our relationships, just seems so much richer. In fact, getting out of debt might just save a relationship!
If you are in the habit of getting repeated payday loans you have fallen into a serious financial trap. First, you are getting a payday loan because your already credit challenged. A payday loan is ultimately your last resort in obtaining fast cash and you’re not alone. The payday loan industry has grown to a 14 billion dollar a year industry because many people have nowhere else to turn when that cash crisis hits. At least that’s what they think. For many us, payday loans are a quick fix to the long-term problem because they are fast and easy to obtain. They can be a great solution for a short-term cash crunch if used responsibly. You should first exhaust all your efforts to get the cash you need before borrowing.
Payday Loan Payoff, That’s The Goal!
Try borrowing from family or friends, but first, have written a plan in place for them. Maybe even try getting direction from a free debt consultant. Our government provides many free debt consultant services. If you have a plan prepared in advance, a family member or friend will be more likely to give you the money you need. You can also ask for an advance on your paycheck. The bottom line is this, if you don’t make changes personally nothing will change.
Things to Keep In Mind About Payday Loans
- Your payday lenders run a high risk of repayment, so interest rates are high.
- Interest rates can range from 200% to 700% depending on how many days your loan is outstanding
- Depending on the lender fees range from $10 to $25 per $100. by law, fees need to be converted into an interest rate.
- your loan needs to be paid back on your next pay date and will be debited from your checking account.
- Most lenders provide loans from $100 to $500. These are very small mico-loans.
Here are some new tips that will help get you back on track. Remember, if you can’t measure it, you can’t manage it.
- Write down your monthly expenses. Now write down how much money you take home monthly. It sounds easy and that’s because it is. Be accurate when doing it and don’t lie to yourself. Don’t write down what it could be, write down what it truly is. It would surprise you how many people either never take the time to do this or just don’t want to know.
- Buy a small pocket notepad. Write down everything you buy. It should be very detailed. It should include Coke, coffee, gum, cigarettes, lunches, etc. You’d be surprised how those little things will add up. This is only the start; you will need to create the habit of doing this daily.
- Evaluate each area in which you spend. If you are eating out, write down how much you are spending. Once you see how much you are spending, you will need to make the necessary steps to cut back or eliminate it for some time. For example, if you bought one soda a day for 30 days it would cost you about $30. If you buy your sodas in larger quantity at the supermarket it might only cost about $7 for those same 30 sodas. You could save about $23 just in soda. The same would apply to coffee. When you brew your own, it’s so much cheaper.
- Evaluate your rent. Are you living in a place you can’t afford? If so, then what are your options?
- Can you cut back on your utilities? What could unnecessary use of water, electricity, or heat can you cut out of your budget?
- Are you stuck in a car with high payments and high interest? What can you do to get out of it?
- Gas is up to almost $3.50 per gallon; could you carpool or move closer to your work?
- This is a tough one even for me: habits or addictions. Cigarettes, chewing tobacco, alcohol, pornography, and more. This will absolutely break us. We all need to get our addictions under control. My addiction is chewing tobacco. Does anyone know that a can of chewing tobacco is $8 or more? These addictions will rob you of your health and finances. Pornography robs your soul, finances, and relationships.
- Most of us get into these financial jams because of our lust for more. It’s easy getting into debt but it’s hard getting out of it. Don’t blame anyone for your situation; not payday lenders, friends, society, no one. You need to take personal responsibility for your debts.
- Although getting out of debt is a challenge, make it fun. Get online and find some resources. Get out your notebook and start writing. Just get tough with yourself. You don’t have to become a tightwad; no one likes a tightwad. You will need to start creating new habits. It takes six weeks to create a new habit.
- Start giving. “What?? I’m broke!” Giving is a principle. Start small, $20 a month sponsors a child, or find an organization to give to, but do it monthly without fail. Within my family’s financial plan, giving is part of our budget. The rewards are awesome!
- Tell a couple friends or family members what you’re doing. Have them check in on you from time to time and make sure they hold you accountable to your financial plan.
- Remember, if you’re not willing to make the necessary sacrifices to get debt free, you will always be struggling financially.
If you never take the time to write down everything you spend, your goal to become debt free will never be reached. Writing everything down empowers you because you always know right where you’re at.
We are bombarded daily with some new thing or pleasure that we “need to have”. I’m personally guilty of it just as much as anyone else. As you become honest with yourself, you’ll get very good at deciding whether you really need that new gadget, the latest model car, or that new dress that is “now in style.” If you can’t find a way to fit it into your budget, maybe you should just consider not buying it. Wait until better times. It’s more important to get yourself back on track and not fall into debt again.