Managing Your Payday Advance
You don't need to be a magician to manage a payday advance loan
, but you do need to need to be aware: using a payday advance is not like pulling a rabbit out of your hat. While these types of loans can be very helpful in emergency situations, getting the most out of it means you need to educate yourself on how this particular magic trick works.
A loan can be a tool to help get your financial life on the right track if used correctly.
Responsible financial management is key to a healthy financial life. However, emergencies happen, and you might be caught in a situation where payday is just out of reach when you need the cash the most.
Some common reasons people avail these loans are for urgent medical treatment or medication, to pay a bill that is due before your paycheck and you can't get the due date changed, car repairs or home repairs. There are many reasons people get these loans but they are not advised to avail for frivolous things such as vacations or shopping sprees.
A payday advance can tie you over until your next paycheck, but keep in mind this type of loan is designed for the short-term, and must be paid back promptly otherwise you may incur extra fees which only puts you deeper in trouble. Only borrow what you need to handle your emergency.
And remember, this is money that is coming out of your next paycheck and adjust your budget accordingly.
While a payday advance loan can look like the answer to your prayers, this is true only if you use it responsibly and are aware of the consequences if you borrow more than you can afford to pay back. If this happens, you may be sucked into a spiraling and destructive cycle of debt, which is difficult to handle.
Consider your normal budget, and calculate the minimum amount you require in the current emergency in order to get it taken care of. A payday advance loan is not designed for a vacation or a new television.
This is the type of loan to use when the car breaks down and you need it to get to work, or if you need medication and the bank account is empty.
The trick to managing a payday advance loan is to borrow the minimum, pay it back on time, and only use it when necessary. When you follow these three tricks, a loan of this type becomes an asset and not a liability, and can quite often make an emergency situation less stressful and easier to endure.
When the utilities are about to be shut off or when the baby is sick and you need to purchase medication or pay for a doctor's visit, this type of loan can bail you out of an untenable position. It will ease your mind enough to deal with the actual event without worry about how you're going to cover it until your next paycheck.
It can be tricky to juggle the budget in the best of times, but in the current economy, it can be tempting to get payday loans for everything you might need. You should be judging how great your need is, against the fees that will come with the loan to decide if it is worth it, and if you know for sure you can pay the loan back.
The minimum requirements are that you be 18 years of age or older, live in the country in which you are applying, have a job that pays you about $1000 a month, and a checking account. The lenders do not require loads of paperwork to review so it can be quite a painless process.
If you are unable to pay your loan back when indicated on your contract, the lender may offer a roll over, or extension, plan. You should ask if they provide this before you sign your contract for the loan.
However, rolling your loan over can be quite expensive if you do it for too long. So as mentioned above, you need to make sure you know that you can pay the loan back.
by: Jack Landry
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