Payday loans continue to thrive as Americans continue to spend. Saving money for bills or college funds are replaced by saving for vacation. High end electronics are also getting their share of customers as people race to the store to purchase the latest version.
In general, there are more people willing to put their financial matters into trouble in order to “keep up with the Joneses.” Fewer families are putting money away towards long-term goals. Recession times have created similar results. When times get tough, people tend to look to treat themselves, to get away from it all. A vacation is a great way to escape the tough job of making ends meet. It is good to hear that people are saving for these vacations rather than using a direct payday loan lender. These short-term loans, when used for the wrong reason, can create additional problems for an overworked budget.
When there is less money going around, savings accounts are less apt to get funded. Emergency and unexpected costs still arise so people are turning to payday loan lenders for support. A fast money fix to take care of an impending payment is what these short-term loans provide. More and more people are reporting living paycheck to paycheck and cannot foresee being financially comfortable. These same people who are homeowners owe more money towards their home mortgages than they could sell for. The housing industry has gone through its own downhill slop, and many are suffering from int. Those which purchased homes at a booming price can now only recover a portion of their loans. Many of these loans were set with a varying interest rate and what was once low is now high and becoming an unbearable cost to those who have no extra funds each month nor have taken the opportunity to save.
What options do people have other than a payday loan lender?
- Credit cards are a popular answer. People get pulled into special sign up rates and spend accordingly not allowing the reality that promotional savings expire. Monthly costs go up as payments need to be made.
- Car title loans can bring in fast cash, but the larger sum which will be paid off in 30 days is tougher to resolve. High interest will make extending a title loan a financial disaster for anyone living paycheck to paycheck.
- Debt settlement is an option for those who have massive amounts of credit card debt. The fees which will be paid to the company will be offset with your savings from creditors, so the more you owe, the more you will save. A downfall to this program is the damage it will do to your credit and the credit cards involved in the program will be cancelled. If you are planning on purchasing a new car or home, renting a new apartment or trying to get an additional credit card this is not the best option for you.
- Credit counseling is a good program offered by both profit and non-profit companies. Be careful which ones you go with as many creditors run credit counseling businesses.
- Bankruptcy is a last option. It does take money up front in order to pursue this avenue and many folks find this too burdensome a choice.
Small debt problems can be done with some work on personal finances or try a payday loan online or cash advance lender to help get by to your next paycheck. If you are one of those who are living paycheck to paycheck, it may behoove you to start saving, even the smallest amounts add up. It will be a super low cost loan you can do for yourself when you are struggling to make it through a few more days.
