Would you rather use cash advance lenders to get emergency money or cut back until the cost of living falls easily into your income level? When other money options have been drained by living beyond monthly income, direct lenders are often used to help keep up with juggling payments and unexpected costs. People are willing to complain about the practices of the direct lenders, but are they willing to change?
According to recent PEW study, many people who choose to use short-term loans to help with unexpected costs are not sacrificing from their lifestyle. Some of these same people get caught up in debt problems when they cannot afford to pay back the same loan which helped them out of a financial emergency.
Use cash advance lenders conservatively.
Fast money is a great opportunity to dance around money troubles, but without proper payoff the help only becomes an additional hindrance. When a person applies to cash advance direct lenders multiple times a year, the loan fees use up money which could be otherwise used to pay for the emergencies. These loans are cost effective if used for a real emergency and paid off on time.
Emergency needs for cash are better handled by preventative budget solutions. Creating an emergency savings account to handle small money problems rather than using a credit card or direct lender is a smarter choice. The tough part of going without some favorite things for a while is a sacrifice too many refuse to make. There never seems to be enough money to go into the savings, but there is enough to buy fancy coffees or lunches out.
There are many simple practices that can be done in order to boost a savings account.
- Take a break for the cell phone and place your service on hold for a few months. As much as it can be an inconvenience for you, remember that we all lived functioning lives before cell phones existed.
- Stop buying food at restaurants. Brown bag your lunch, brew your own coffee and cut some extras out of the grocery bill. There is a lot of money to be saved from food costs. If we take that savings and place it into the bank, you will see how it all adds up quickly.
- Use the cutbacks to teach your children the difference between wants and needs. Buying items just because it is the latest playground trend does not mean that they can’t live without it. Childhood is a great time to learn money basics.
This is a short list, but you can start to see the picture and hopefully change your mind set on how to take care of emergency costs. The first step is to find room in your budget to save. Everybody’s situation is different. If you do not have extras to cut back, then you will need to focus other ways to save. Does your energy company offer programs to lower power usage? Where can you cut back on the water bill? Limit driving to the basic necessities.
If you find that you still need to use credit or apply to online cash advance lenders, make sure you pay them off as soon as possible to prevent the companies from taking more of your hard earned income in interest charges.
