Many consumers have experienced the financial pain that goes along with paying bank fees and credit card charges. With fees often times as high as $35 per item, payday loans may be the best way to get some immediate budget backing in an effort to avoid enduring a hefty price for insufficient bank balances or over-the-limit credit card balances. Even the savviest of household financiers can fall on difficult times when it comes to balancing the checkbook. Borrowing money from a short-term lender may provide a fast financial fix to avoid those hefty charges tacked onto overdrawn accounts and/or credit cards.
Let’s face it, we live in a credit driven society. It has become all-too-easy to swipe that little piece of plastic and give ourselves a little bit of time off from thinking about how much that item is going to cost us in the end. Creditors have made it so easy to purchase on a whim that often times we don’t think about whether or not we really need or can afford what we are buying. Even in the case of debit cards, making a purchase seems less painful because we aren’t feeling the immediate pain of handing over cash and experiencing the effect of our cash flow getting smaller.
It’s not to say that a person should never use a credit or debit card. In fact, when used properly and responsibly, those little plastic payment tools can prove to be quite beneficial. The use of credit allows consumers the opportunity to buy higher-priced items that may not be supported by one’s bank balance. Credit also provides security for unforeseen expenses like car repairs and trips to the dentist. Sometimes it’s just a matter of getting by until payday and having a financial means to fall back on.
The problem comes when purchasing with plastic becomes a financially unsupported habit and a long-term debt issue. Some consumers may find themselves not being able to keep up with payments and over-the-top balances. That is when “insufficient funds” fees, late charges, and the costs of going over credit card limits start a nasty domino affect on one’s finances. Payday loans can provide overnight funds for someone who needs cash in their bank account quickly and without any questions being asked. While borrowers will be faced with interest and fees to take out one of these small dollar short-term loans, the costs associated with what it may cost a person when the bank and credit card charges have been assessed could far outweigh what a payday lender will charge.
If taking out a payday loan will help juggle a negative bank balance, then make sure it can be paid back quickly; preferably with your next paycheck. In the meantime, seriously reconsider your budgeting practices and revamp your financial plan. If you have no plan, create one as soon as possible. Without any kind of financial guidance, you are bound to create a problem for the future of your money. Remember that credit cards should be saved for emergencies or situations in which you know you can payoff what you have charged when the next statement comes. A good rule to live by is that if you can’t afford to buy the item with cash, then you can’t afford it at all. This, of course, doesn’t apply to car repairs, medical costs or other necessary expenses.
Be sure to live within your financial means. Budget for monthly expenses according to your take-home pay. Find places to cut costs if you have to and don’t be tempted to use a plastic form of payment if you know you don’t have the money to support the purchase. If you find yourself in a situation where you need help from payday loans lenders to cover the costs of bank fees and credit card charges, make sure you are able to payback your lender without putting yourself in a worse position financially.