Payday Loans

35 Creative Money Saving Tips To Avoid Payday Loans – Part 2

In the first part of this article, you read about seven creative ways that can help you save a lot of money so that you can avoid payday loans. Following is a brief rundown on some more ideas that will help you achieve your ultimate goal of financial freedom.

8. Pay Off Your Credit Card Balances In Full Every Month

Credit cards allow you to transfer the balance to another month without any penalty provided you make a certain amount of minimum monthly payment. Though it is true that no penalty or late fee is charged directly on the balance you thus transfer, it is very important for you to understand that you will still be liable to pay additional interest on the balance for the extended period of time. It can be a huge sum of money. If you keep on transferring your debts like this, your outstanding balance on your credit card will soon become a huge mountain of debt. So, make sure you use your credit cards wisely and pay off the full balances every month.

9. Do You Really Need That Extended Warranty On Electronic Items?

While you are looking out for creative ways on how to save money to avoid payday loans, you should also be very careful with your decision about purchasing extended warranty for electronic items. Extended warranty comes with a price tag, but statistics say that a very small percentage of consumers actually get a chance to use this warranty. The reason is simple; most electronic items do not easily break during the warranty time period. That is the reason why they are confidently providing you extended warranty. You can save a significant amount of money by sticking to just the basic warranty.

10. Quit Smoking To Generate 3-Fold Savings

Smoking is injurious to health, which causes unnecessary medical bills, which can sometimes be extremely costly. Second, Smokers need to pay a higher premium on their health insurance policies. Third, most people fail to realize that cigarettes are getting costlier day by day. This way, if you quit smoking, you can save a substantial amount of money in three different ways. For example, you will be able to eliminate unnecessary medical expenses. You will be able to reduce your health insurance premiums. And, you will be able to save hundreds of dollars, which you would otherwise have to spend on buying cigarettes.

11. Get Pre-Approved For Necessary Loans

It is sad to see that many people obtain payday loans so that they can make higher down payments on necessary loans (such as mortgage and car loan) in an attempt to qualify for a low-rate deal. This is definitely not a wise strategy. You must always avoid payday loans at all cost. There are better ways to clinch low-rate deals in mortgages and car loans. One way to do this is to get pre-approved for the loans. Most people first decide on which car or home they have to purchase; they look at the price tag, and then start hunting for a financing option. This is not the correct order of how things should be done. The right strategy is to first apply for a loan and get pre-approved. As part of this process, you will have to submit an application form with the lender, where you will be providing all the details about your income, expenses, savings, debts, credit history and other things related to your finances. The lenders will verify the information and then they will approve a certain amount of loan on that basis. Once you know how much financing is available to you, you should start hunting for a home or car accordingly, something that fits easily into the amount of loan that has already been approved. Always remember, even home and car sellers prefer to deal with consumers who are pre-approved for loans. It will help you clinch a very low rate deal.

12. Avoid Convenience Fees At ATMs

In order to save more money and to avoid payday loans, you must also avoid using ATMs from other banks’ network. Withdrawing money from other bank’s network seems like a very convenient option, but it is very important for you to keep in mind that many banks are still charging up to $2.50 per transaction for this convenience. If you are using other banks’ ATMs ten times in a month, you are wasting $50 for no special benefit. So, save this money. For example, you should make fewer visits to your bank’s ATM and withdraw enough money that should not require you to make more frequent visits.

13. Reduction In Expenses And Increase In Income Should Be Deposited Into Your Savings Account

Have you received a bonus or a raise from your employer this month? Is the amount of your electricity or gas bill this month is less than usual? If yes, you should deposit the difference (the reduction in the amount of bills and the increase in income) toward your savings fund. Most people spend this extra money carelessly, which is not a wise idea. Save this money for a better financial future so that you should never fall into a situation, where you may have to borrow money from payday lenders. When an impressive emergency fund is always available with you, you will easily be able to avoid payday loans.

14. Request Your Utility Service Providers, Insurers And Lenders For Lower Rates From Time To Time

As time progresses, situations change. For example, it is possible that you had a poor credit score ten months back, but your score is now much higher. You must always try to utilize your improved situation. For example, you can contact your lenders, insurers and even utility service providers and inquire if you can qualify for certain discounts now that your situation has improved. If they say NO, inquire for better deals with other lenders, insurers and utility service providers. It is very much likely that you will find a better deal elsewhere. But, before you switch on to another company, you must inform your current company in advance; give them an opportunity to retain you by making a much better offer than you are getting elsewhere. This strategy can result in a large amount of savings, which you should contribute toward your emergency fund so that you can avoid payday loans.


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One Response to “35 Creative Money Saving Tips To Avoid Payday Loans – Part 2”

  1. John says:

    Saving money is not a very difficult task to achieve. Any body who follows the budgeting process sincerely can never be finding himself in a position of lack of money. Budgeting is very important aspect of every body’s financial life. Budget can make or ruin your finances completely. Plastic money plays an important role in pushing the person towards payday loan. Credit Card Company provides a lot of exciting offers like shop today and pay another day. It must be a hard and fast rule for you to pay off your credit card balance every one. It should not be partially paid; it must be paying in full. One more thing where we do not even think twice is getting the extended warranty on electronic items. It is true that the extended warranty comes with a very little extra amount but there is no need to pay even that extra amount. Smoking also provides you a loss with three sides. It is a loss of your health, loss of money and your health insurance policy will also charge you extra amount of money. Sometimes, we go for a pay day loan just for making an important installment of our mortgage and car loan. It is not at all a good step to repay the installment.

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