Secrecy is one of the biggest issues behind payday loan usury problems. Whether money troubles stem from overspending or neglect, a budget that demands any type of reliance on short-term loans will create problems. When secret use is involved, it is natural to hide negative results. Unfortunately, when it comes to money, secrets compound with monetary loss. With every payday loan, there are fees, budget stresses and a debt trap ready to catch someone’s fall.
Overspending. Shopaholics, emotional spenders or those trying to keep up with the Jones next door must learn to cut back. Shopping for extras is a luxury that only a well-managed budget can afford. You can’t disguise affordability in the form of plastic cards or short-term loans. Affordability is defined by the cash left-over after every other expense and need has been met. You may not be able to afford the most recent upgrade, but you can make every attempt to pay all your bills on time and protect any future emergency cost.
Neglected budgets. Money management is something that must be done month after month. You should never turn your back on a budget. There are too many varying factors.
1. Biyearly or quarterly payments may be due and you forgot to include them in the budget plan. How will you afford the extra cost?
2. An emergency savings account was not established or not enough money was deposited. Without extra cash to pay for unplanned expenses, outside money supports the demand.
3. Depending on the time of year, additional expenses frequently occur. If only the budget had planned for gifts, dinner parties, sport sign-ups, school dances and summer camps. Just when you thought your budget could not support one more cost, it comes.
4. Maintenance costs are hit or miss. Everything in your home is working fine until something begins to break down. You may think routine maintenance is too expensive, but it saves in the end. Think about your vehicle. How much does it cost to change your oil on a regular basis vs. how much does engine repair cost? If these costs depend on third party money, you are spending more than you need to with interest charges factored in. You should never need a payday loan to change the oil in your car unless you neglect these costs from your budget plan.
Third party money reliance is expensive. It’s convenient to use this payment method so you don’t have to work at cutting back elsewhere. The problem with borrowing money from creditors and direct lenders is the interest charge. Pay a credit card off in the first 30 days and chances are good that you won’t have to pay a penny extra. Leave a balance on the card and watch your balance increase. Payday loan lenders will charge interest as soon as you take the loan out. A short-term and high rate will make your payoff increasingly difficult over time. The interest charge is a fee that has to come from somewhere. Where in your budget do you have the extra income? You may be able to ‘afford’ the payment, but you would be better off keeping that money for yourself. It is important to not let third party money reliance eat at your income.
Don’t keep the secret. If you can’t seem to get yourself out of debt trouble, ask for help. You have family and friends that work with budgets. Find a knowledgeable one to help you make a plan to get out of trouble. If you want to keep your financial business a secret from loved ones, at least go to a non-profit credit counseling service for help. They will help you figure it out.
Don’t ever be afraid to call the creditor or direct lender yourself. They may have options or suggestions for you to obtain help with your debt. Don’t waste one more day under the trap of interest charges. It will help you build a better financial future.
