Credit has been a twin facilitator of business transactions alongside with cash since time immemorial. It is a very important prime mover of commercial activities around the globe. The same significance of credit is true in our personal lives either directly or indirectly. Every aspect of our daily existence seems to be affected by it, even unknowingly. Without credit, the finances of the average man could be hardly stretched to meet his family’s everyday needs. Cash advances like payday loans are crucial means for a man to solve an urgent financial emergency before payday comes. While credit assistance is a part of our lives, there are still solutions that could mitigate the situation and could help us to be prepared when a sudden need arises. Below are some guides on how to reduce our dependence on credit.
- Proper budgeting- Although we know that payday loans are readily available when our sudden need butts in, we should do something to put payday loans on the backseat. The solution is simple- budgeting. Make a list of your daily needs and not wants. From the list, make a priority of things you should pay first until you finally come up with the budget. Review your budget regularly if it is the most doable and realistic. Make a revision if needed.
- Prioritize your disbursements-this applies to your existing payables or amortizations. List down your outstanding obligations according to the interest rates they bear. Pay first the loan with the highest interest or penalty charges. This will save you some money when you avoid defaulting on their payments.
- Set-up an emergency fund-before an unexpected financial urgency strikes, establish an emergency fund by setting aside some money on a regular basis. See to it not to use this fund aside for the purpose it was set-up, this will be your fallback when that urgency comes.
Execute it to the letter
If you have prepared a budget, make it a point that you are committed to follow it to the letter. No amount of enticement should draw you farther from the path you have planned to thread. Be true to your oath to follow this budget no matter what. Your firm resolve is your best weapon to avoid unnecessary spending that could wreck havoc on your budget.
Do your homework
There are times that there are factors which you cannot control and force you to seek refuge to payday loans. If after you have done your best to avoid being drawn to avail them, a simple homework will help you reduce the cost of using their cash advances. Below is a simple guide in doing that job.
- Use your computer and internet connection to draw a list of payday loan lenders together with their terms and conditions. Also include in that list a copy of their application form.
- From this list, make an analysis and compare each service offered by the individual lenders. Include those whose data on their application forms can be supplied by you.
- Draw a list of your answers to the application form to be filled up. Review them to determine their accuracy. Do not include data that are not true, non-existing or invalid.
- Make an intelligent selection of the lender to whom you will apply for payday loan then fill up their application form. Review your answers meticulously before submitting the online application form.
After you receive the proceeds of the payday loan, make it a point to spend it wisely.« I Need a Payday Loan But Don’t Have a Checking Account | Payday loans on a weekend »