What are the alternatives to payday loans?

Though payday loans are a quick way of getting cash, they can be addictive. They also come with high interest rates that may make you strain during repayments. That is why you should consider other alternatives before choosing this easy option. You can use some affordable options when in need of quick cash such as selling items you don’t require.

Online sites such as eBay provide a platform for you to sell household items that you may not be using anymore. If you need urgent cash, it may be the time to let go of a strong attachment on some items such as musical instruments, a pool table or some electronics. Pawn shops also facilitate quick sales on different things.

You can also try negotiating with a creditor to extend a due date if you are struggling with making repayments. Most of them are lenient and might consider your plea without adding charges on the late fee. Talk to your phone service provider and explain your situation to them. Do not be comfortable with a few working hours if they are not generating as much income as you would like. Consider working overtime to raise more revenue for your expenses.

A side job can also prevent you from applying for payday loans. Utilize your skills and hobbies to provide services to the community. A lot of people earn from their hobbies, and this can give you gratification and also help you settle some of your bills. Your employer can also offer a cash advance if you need an emergency loan. The difference between this and a payday loan is that it may come with minimal fees. They can lend an advance and deduct it on your paycheck.

Most people use cash advances effectively knowing that they will receive less during payday. Your employer can also offer you a loan to repay in increments over more than one period so that you don’t take home a minimal salary. You can also seek emergency hardship programs. Some local organizations such as humanitarian institutions and churches provide loans to the community.

Your friends or family members can also help you financially during an emergency. You should be careful when using this means and take it as serious as borrowing from a business lender to avoid breaking a relationship with them. Do not take advantage of your relationship and make late payments.

A credit card with available credit can come in handy in purchasing some commodities. You should only use this means as the last option to avoid accumulating balances easily. Maintaining a good relationship with your bank can help you secure an overdraft protection plan. This allows you to settle overdraft items using a line of credit.

Do you have an emergency fund? You can take some of the money from the fund and use it during a crisis. Ensure that you replace it as soon as you get stable. A bank can also be willing to offer you a small loan with a low-interest rate. They can also give you reasonable repayment terms so that you don’t struggle to pay it back.


The ways of managing debts and getting relief from them

We all find ourselves in a tough financial spot that makes us opt for payday loans. Though such loans can help you when in need, paying off the debt is the only way you can get relief. Debt is not only limiting but it also hinders you from making investments, and progressing in life. It can also limit your choices when you need to start a business or even follow a certain career path.

Debt is a constant reminder of your obligation, and you should not use excuses as a way of justifying your debt. Come up with a debt payment plan. This can help you gain financial freedom as you plan to settle all your debts. Create a plan as you add all the debts you have together so that you know how you can pay them. This is depressing for most people but it will help you make financial progress.

If you have a student loan, you should understand the different payment options. Most government loans offer low-interest rates to students. This loan can come at the end of your debt payment plan as you first consider settling high-interest rates. Use the different payment options to pay for the loan over time so that the interests do not accumulate and burden you.

Beware of debt consolidation loan. The loan can convert an unsecured credit card debt into a secured debt. It is important for you to make payments on such a loan promptly to avoid losing your property. With a debt consolidation loan you only transfer the loan somewhere else instead of paying off your debt.

As you pay off your debts, try to adjust your spending habits. You may consider a debt relief firm, but you should first look at all your other options before taking this step. Such firms are useful, but they come with their own terms and conditions. Alternatively, look into debt settlement which makes it easy for you pay your debts fast. It can help you a lot when you are late to settle on payments.

Do not try to postpone on payments to qualify for the debt settlement. Some people also consider filing for bankruptcy to clear up debts but this should be your last resort. Even with bankruptcy, the lender expects you to pay some of the debt. However, it may affect your chances of getting a mortgage in the future. Get a financial counsellor to advise you if you are in a tough financial crisis before filing for bankruptcy.

You should also show responsibility for your debts. When you borrow a loan, ensure that you make a budget on how you are going to use the money to avoid wasting it on unnecessary things. Prioritize on the most crucial items such as settling important bills. Make wise spending habits as you limit your expenditure. Remember not to borrow more than you need so that you don’t end up wasting money and getting into big debts.


Take charge of your spending habits like this

Money is a powerful commodity that determines your status in life. It is the reason behind social classes in society. Your spending habits are what determine how much you have at the end of the day. Unfortunately, some of us have poor spending habits that leave us with debts from payday loans and balances in our credit cards.

Most creditors spend a lot of time on borrowers who make late repayments. The reason why some people get themselves in a rough financial situation is that they don’t know the right spending habits to adopt. If you don’t keep up with the minimum payments on your credit cards, you may lack the freedom to get some important commodities.

It is, therefore, essential to take charge of your spending as soon as possible to avoid a crisis. You can do this by identifying your spending triggers. Most of us fail to address the real reason behind getting into debt. Spending triggers are what makes a lot of people get into compulsive shopping. You can identify this by maintaining a spending log that helps you identify the reasons behind your decision making.

Recognize the spending urges that you cannot control. Some people go shopping to relieve themselves from bad moods and feel good about owning new items. Though shopping can be a stress-reliever, it can make you overspend and make you forget some priorities. That is how some people end in debt. Facing your triggers can help you start controlling your spending habits.

Avoid using credit cards if you cannot control the urge to keep on swiping them. These cards sometimes make you forget that you are actually spending real money. They give you temporary satisfaction until you get your statement and have to make payments. Avoid overspending on credit since it has negative financial consequences and may lead you to debt.

Sometimes, it is better to use cashthan swipe cards because in this case, you notice parting with your hard-earned cash. Using money more than debit or credit cards gives you a clear picture of how much you spend every month. This is because not many people have the discipline to download their credit card statements to check their expenditure at the end of each month.

You should also evaluate what money means to you. Identify the attitudes and beliefs that you have towards money. According to a study, most impulse buyers do this as a way of raising their self-esteem, thus end up buying unnecessary items. A parent’s attitude towards money can also influence their child’s decisions when they grow up.

It is good to know that no matter how powerful money may be, it does not determine a person’s worth. This principle can help you stop connecting this commodity to self-worth. By breaking such psychological barriers, you can start spending your money wisely. You should also educate yourself more about money. Many sites can teach you how to get rid of debts from loans. They offer psychological advice on how to handle money to reduce debt so that you can achieve long-term success.


How to get a loan when you are out of a job

Being employed comes with benefits such as different loan options to help during financial struggles. Circumstances sometimes change, and you can find yourself out of a job and in need of financial help. Fortunately, some loans are not only limited to the employed. There are some loans in the UK that you can secure even without a job.

One of these kinds is payday loans. These are loans that a lender offers to help you with an emergency financial problem for a while. You could use it to settle some bills then pay it after a few weeks. To get such a loan in the UK, you must show the lender that you receive regular income even if you are not employed. You should have enough money to repay the loan within the required time.

By showing a lender the capability of making repayments, they can give you up to 1,000 in one month. You must, however, be a citizen of the UK and be above 18 years. You should also have a bank account that is functional since they deposit the loan in banks. Unlike other types of loans which can take days to mature, this can take minutes for you to receive approval.

Unemployment should not deter you from applying for a loan when you know you have the capacity to repay it. You can also get a guarantor loan to help you settle your bills. In this case, you need a guarantor to represent you if you are not able to settle the loan. The guarantor is held responsible by the lender if you default on payment.

A guarantor loan allows you to borrow up to 12,000 and get reasonable payment terms which can last for some few years. Lenders check if you are a homeowner and if you are of age before they can approve the loan. They cannot accept a guarantor who is bankrupt.

As you apply for this loan, you should be aware of the high annual percentage rates which range from 40-200%. You should therefore not apply for this loan if you doubt your potential to repay it since it can put you and the guarantor in serious problems.

Some lenders are also considerate enough to bring doorstep loans to your home. Unlike other loans that need bank accounts, this is delivered to you at your home. The lending company uses representatives to deliver the loan and collect your monthly payments. Most unemployed people consider this type of loan.

The lender only needs proof that you can make repayments within some time. You can borrow any amount ranging from 100-2500. The company sends a representative to your home to evaluate your condition after online loan application. They consider your residence and age before they approve the loan.

The company can also make some phone calls to you during the processing of the loan and deliver it within a week. Though the loan is attractive, it also comes with high-interest rates.  The company utilizes agents around your neighborhood to collect payments. Ensure that you know the agent and ask for their ID every time they come for payments to avoid paying the wrong person.


Here is how you can stop getting broke before your next pay check

Do you earn a good salary but often get broke before the end of the month? Most employees find themselves in this situation. According to statistics, this is the lifestyle of about 60% of workers.  It is a clear indication that you may be living pay check to pay check. People in this situation find themselves borrowing from friends, applying for payday loans or even asking for cash advances from work. Some utilize their credit cards before the end of the month.

The problem with this kind of lifestyle is thatit damages your finances. You can accumulate a lot of debt that can hinder you from future borrowing if you are unable to afford minimum payments. Though loans can save you, depending on them makes you develop poor money habits. Your future should not be dependent on your current spending. You should look for ways to stop getting broke in the middle of the month every time.

People have different reasons why they are living pay check to pay check. While some do not earn enough income to cover their expenses, others do not make a budget when they receive their salaries. Let this be your first activity when you get paid at the end of the month. If you don’t have a budget, create one and if you broke your budget, fix it immediately.

A budget can help you assess if the income you earn is enough for all your expenses. If you determine that the income is sufficient to cover all your costs, then the problem lies in your spending. You should always monitor your spending to determine how you spend every pound you receive from your job.

A lot of workers spend a lot on transportation fee and food. Know how much you pay on transport the entire month and try to look for cheaper options. For instance, you can use a cheap train instead of a taxi to get to work. Try to minimize other bills such as getting affordable health insurance, or carrying a packed lunch to work. Cutting down on the expenses can help you save some money so that you don’t get into debt before the next pay check.

If you use debit cards a lot, download the transactions into a finance software so that you identify where most of your cash goes. Change your lifestyle if you realize you have poor spending habits and get discipline when using cards.

You can also look for ways to raise your income. Sometimes, your current income may not be able to cater to all your needs. Get a part-time job to help you raise your income if you have some spare time. You can also alter your tax withholding if you get a tax refund so that you raise the money in your pay check at the end of the month.

Start making wise spending decisions and change your perspective of money. Do not overspend on things that are not necessary. Wise spending habits and a budget will prevent you from getting broke every time in the middle of the month.