Happiness is what they're selling. Relief from the crushing
weight of that gigantic rock we're all forced to carry called
'financial burden.' It's heavy and cumbersome, and the very
thought of unloading it for a short time is so tempting, that
some of us find it easy to throw caution to the wind and apply
for the quick cash loans these small payday advance lenders
offer.
Why not? The cops towed your car off, and you need eighty bucks
to pay off the ticket. You can't work without your car. You don't
have the money to get your car. You don't get paid until next
week. A cash advance seems like the logical solution. They don't
even look at your credit history. They just want to see a
paycheck stub and a bank account. How easy is that? Then there's
that thing you've been wanting to buy...it's only a few bucks
more, so you may as well make it a hundred instead of eighty
dollars. Oh, and your kid has been begging for that game. Another
twenty won't make a difference.
The excuses for more will keep adding up, and here's this company
ready and waiting to hand you a wad of cash. Cold hard cash. The
kind that's easy to spend, because it's in your pocket (burning
a hole) instead of in the bank (waiting for bills).
Why not? Because if you don't have the money you need saved in
the bank, it shows you have a hard time controlling your spending
habits, and you're probably going to have a hard time paying off
cash loans. This means a new set of weekly fees that you hadn't
planned. Before you're through, you'll end up spending much more
than you borrowed just in interest and late fees. Stop the mad
cycle of easy cash loans and payday advances. You might have no
choice but to borrow, but following a few simple steps can help
eliminate the painful after-math of a cash advance.
** Only Borrow as Much Cash as You Need.
This might be one of the hardest parts. When you're applying for
a cash loan, and you know you'll be out of diapers before your
paycheck comes, it's so tempting to add a few bucks of spending
cash to the credit line.
Stop yourself right there. Ask yourself a few questions.
- Do I need this money right now?
- Will I spend the money immediately on something that is
necessary?
- Can I do without the money by conserving my resources?
- Will I actually use the money on this excuse, or will I end
up blowing it on something frivolous?
Can you wait for the extra money? You probably can. It's nice to
have everything you want without waiting for it, but it will save
you a lot of money if you just hold off until payday.
Will you spend this money immediately? If you want to advance an
extra thirty bucks so you'll have enough to for gas on Friday,
you should reconsider. If you know for certain that you'll need
it, fill your tank on the way home. Don't carry the extra cash in
your pocket, because you're likely to spend it on something else.
Can you find another way to get by? Most of us are surprised by
what we can accomplish when we're strapped for cash. Use only
half the soap for laundry loads. Buy the cheap hotdogs for supper
tomorrow, and reheat last night's meal for tonight. But don't use
credit.
Are you really going to spend the money on what you think you're
borrowing it for? Cash is hard to hold on to. You know your
habits. If you've blown the grocery money at a restaurant before,
then don't borrow it.
** Don't Let the Late Penalties Kill You.
You've followed good sense and only borrowed what you needed. You
skimped by on as little as possible, and now your pantry and gas
tank are empty. You want to stop at the bank, cash your check,
and buy a few things before going to the loan company to take
care of your advance.
Here's where you'll make your biggest mistake. When you have your
paycheck, go straight out and pay off that loan ...all of it. The
groceries can wait. The movie rentals can wait. Your only concern
should be to get out of debt. Most loan companies can cash your
check for you. This will make it easier to do all at once. Don't
spend a single penny until your debts are satisfied. If you delay
your payment, or only pay it partially, you'll start that ugly
cycle again, and who knows when it will end, or how much extra
you'll spend. Sell all your toys and eat macaroni and cheese for
the next two weeks, but settle that loan.
** Now It's Time for Discipline.
You borrowed only what you needed. You paid all your cash loans
in full the very day your paycheck came. Now you're debt free and
living easy on payday. You even have a few extra bucks in your
pocket. Maybe you can afford to buy the gourmet coffee. Just one
cup to celebrate. Oh, and a doughnut to go with it. Wrong.
Now comes the real work. Now it's time to roll up your sleeves
and keep this from ever happening again. You need to restructure
your spending habits. You need to stop thinking of those extra
dollars as spending cash, and start thinking of them as your
safety net. Put the money away. Put it in a different account.
Not a checking account, but a savings account. One that you need
to actually go to the bank in order to withdraw, because the
situation will rise again. You'll have another emergency, and
you'll need cash. Your car will get towed again, your water
heater will stop working, or you'll get a tooth ache and have to
go to the dentist who only accepts payment at the time of
service.
Here Are a Few Tips to Avoid Frivolous Spending.
1. Don't carry cash. As mentioned before, cash burns a hole in
your pocket, so don't keep it with you. If you feel it's
necessary to have a stash, keep it at home.
2. If you're spending more than fifty dollars, sleep on it. We've
all bought things on the spur of the moment and regretted it
later. If you make a strict rule and hold yourself to it,
you'll cut down on most of these regrets.
3. No credit means good credit. Cancel your credit cards. All of
them. If you can't do it, then take your one credit card, put
it in a Tupperware bowl filled with water, and put the bowl
in the freezer. Eliminate any records you have of your credit
card numbers.
4. Go through your monthly bills and decide which ones to
eliminate. Don't ‘decide if you can eliminate any.' Decide
that you're going to get rid of at least one and figure out
which one it is. We all have unnecessary monthly bills. Be
honest. Do you really need two cell phones? Do you even need
one? If you can eliminate one of them, and put exactly that
amount away every month, you'll be surprised at how fast your
safety net grows.
5. As you put away your groceries, look for items you can do
without the next trip. Most people could cut down their
grocery bills by over 25% just by not buying what will go
to waste anyway. Look at everything you throw away, and ask
yourself why you bought it to begin with.
Cash loans are convenient, and sometimes necessary, but they
are not ideal. They are for emergencies, but with some careful
planning and healthy spending habits, you can avoid the need for
them altogether.
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