Facing a financial problem can be challenging, especially if your wage is low and you don’t have enough money from one month to another.
A payday loan or an SMS loan can be a wise decision to make if you face a particular financial challenge, but it shouldn’t become a habit.
However, if you have a long-term problem with your money, it should be better to consider different solutions.
Let’s see some tips and hints about payday loans, as this could help you out in your times of need.
A Thorough Research
Before you choose a financial company to assist you with your short-term loan, it’s important to do a thorough research for finding the best offer on the market.
The interest rates can vary from company to company, and for the same sum of money that you take from them, you could pay less or more.
A Savings Account
Opening a savings account is another solution that you can use when you face financial difficulties. You could go to any bank and deposit 5% from your paycheck every month. You could also talk to your employer to deposit that sum of money directly into your account, and you’ll have a good amount of money by the end of the year. You might notice a slight difference in the wage, but you’ll have your savings when you need them.
The Right Sum
If you still need to make a payday loan or any other type of short-term loan, it’s better to be cautious about it. It’s a rule that everyone should apply – you need to take only that sum of money that you will be able to return in due time.
It might be tempting to take more, but when the payment time comes, it will be harder for you, because the interest rates are quite high.
If you can’t pay back your payday loan, it’s better to look for another solution instead of choosing to roll over the credit.
Some banks offer similar short-term credits that you can use to cover your payday loan. The difference here is that the bank will have a lower interest rate, so the sum that you’ll have to pay each month will be smaller. The other difference is that the bank will ask for your credit history. If you have a bad credit history, the chances are that you won’t receive a very high amount of money.
A Credit Card
A credit card should be used only in case of emergencies. It’s good to have a credit card, but you need to let it untouched. It means that you don’t have to withdraw money from it unless you need to. If you require paying your payday loan, the credit card can be a good solution. The interest rate for returning the money is lower than the interest rate for paying off the payday loan or than rolling over your credit for another month.
Some people take more credits than what they can afford to pay back, and this leads to a debt spiral that is hard to avoid. If you’re in such a situation, it might be best to talk to someone fro a consumer credit counseling agency.
They have specialized personnel qualified in dealing with financial difficulties, and you can receive the best professional advice. With their help, you can gather all your credits into one and pay a smaller interest rate, or you can create a payment plan.
No matter what you choose to do, it’s best to see someone who is qualified and specialized in finances, because the financial problems are the hardest to deal with.
We know that it’s tempting to have a large sum of money on your card, but it’s better to avoid having an overdraft card. If you live from payday loan to payday loan, and from paycheck to paycheck, it’s better to limit the card and use
only what you have. If you choose an overdraft card, you might get into a debt spiral due to the fees and interest rates.