Payday Loans

When Do You Need A Payday Loan? Is It A Last Resort?

The life of average Americans run on credit. Though the national average income per individual is an impressive one, a large part of the population has to live with a hand-to-mouth salary. Budgeting, however, is one of the most talked about concepts, but very few actually have a budget plan and very few out of them follow the same. When people are hit with an unexpected expense, they often need a payday loan to get the extra cash required to meet those expenses.

A Last Resort

Though there are obviously several better alternatives to borrow money, some people do not have many options. For example, a good alternative is to pay for the expense using your credit card, but there are people who do not even posses a credit card. And, those who do have a credit card are often neck deep in too much debt already and that they have already crossed the maximum spending limit allowed by their credit card. Another alternative is to borrow money from friends and colleagues, but most Americans do not like to do so; in fact, they do not even like to have friends who make such requests. So, most people do not consider it as an option at all. Then come conventional loans, but considering the very fact that it requires applicants to go through a series of paperwork and that it takes at least a week or two to get their loan applications approved, most people do not go for it. When all these alternatives fail to work, people think need a payday loan. So, yes, in one way, it seems to be a last resort. But, what they forget to realize is that there can be an array of other alternatives as well that can help them to borrow the much needed cash quickly.

Have A Budget Plan; Build An Emergency Fund

Just because you have a very limited monthly income, it does not mean that you will always have to look out for payday lending programs as a solution to get the extra needed cash to meet unexpected and unplanned expenses. Many people keep on borrowing multiple payday loans every time they stuck with a temporary financial emergency and eventually they get trapped into a vicious cycle of debt. Therefore, you are advised to have a budget plan, where you must also plan to build an emergency savings fund so that you should be able to meet even the unexpected expenses as and when they come. With an emergency savings fund in place, you will never need a payday loan.

Though budgeting is a nice concept, since it requires people to spend less and save more, many people find it a big turn off; thanks to consumerism. Everybody wants a better standard of living, and in an attempt to achieve the same, most people keep on spending carelessly. No wonder why there are so many foreclosures and bankruptcies happening in the United States of America. You can blame it to inflation, but still cannot deny the basic fact that such problems arise due to lack of budget plans. Budgeting is all about having a plan to deal with unexpected financial difficulties with much ease. It obviously requires you to compromise with your spending habits, but it is worth the effort. When your finances and debt situation are in control, you will have better peace of mind and have a smooth financial and personal life.

Overall, if you want to put yourself in a situation where you will need a payday loan, make sure you have a budget plan that helps you save enough money to meet unexpected expenses that often appear out of nowhere, such as a big car repair, a medical bill and others.

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Posted in Payday Loan Alternatives | 1 Comment »

One Response to “When Do You Need A Payday Loan? Is It A Last Resort?”

  1. james says:

    Every American faces some shortage of money in his life. This is all due to the lavish life style they follow. An average American depends upon plastic money a lot that’s why they can not understand the actual benefit of saving or following a budget plan. Whenever they find themselves in a situation of cash crunch, they start looking for getting a pay day loan. Taking a pay day loan is not a bad idea but its repayment process is really a tough one. The small amount become huge amount with accumulation of very high interest and it becomes very difficult to repay the loan in time. It is important to look for some other alternative in place of pay day loan. You can even go for credit card advance because its interest is even less than the interest of pay day loan. Other option may be to follow a strict budget which means you have to follow a rule of spend less, earn more. An emergency fund can help you in the situation of any unplanned expenditure which you can not avoid like Medical emergency or any other unavoidable circumstances. When you start budgeting, you will feel some sort of unhappiness but it will provide you fruitful results.

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