You Can Avoid The Need For Payday Loans

Posted by Garrison Galbraithe

April 13, 2009

by Garrison Galbraithe

Payday loans are typically very expensive and can be difficult to pay off. It is better to try to avoid needing a payday loan in the first place. The one benefit of a payday loan is that it gives you instant access to cash in an emergency, but that comes at a significant cost. There are a number of things you can do to help you manage your money better so that you wont be in a position of needing a payday loan.

First, its a good idea to honestly review your spending habits. How do they compare to your income? Do you spend more than you make? Do you spend almost everything you make? Are you able to save any money? Even if you have high limits on your credit cards, you dont want to spend more money than you are earning.

Next, evaluate your purchases themselves. Do you go out to lunch everyday at work? Bringing your own lunch can save you a lot of money over the course of a year. Simply, if you buy lunch for $5/day and work 22 days/month, youre spending $110 a month. You bring a homemade sandwich, salad, and piece of fruit everyday for a very small fraction of that cost.

Its a good idea to avoid impulse purchases. Often we buy things that catch our fancy in the moment. Sometimes well be truly happy with the purchase. Mostly though, we either regret it or the item sits in a closet or on a shelf, unused. This can run into quite a bit of money over time. Try to get in the habit of delaying your purchases to make sure you really want the item, and can afford it.

If you really need some extra cash fast, look around your home. If you have unwanted items, you might consider selling them. If you have collectibles, you probably want to bring them to a consignment shop or sell them on eBay. If you have a lot of things you could bear to part with, have a garage sale. By doing these things youll clear out some space in your home, and youll get cash for doing that.

Consider using coupons. Restaurants and businesses often send coupons through the mail. Look through the value pack and your Sunday newspaper. Clip coupons for groceries. You can also find coupons for everything from plumbing repair, to haircuts, to half off dinner at a local restaurant. Dont feel embarrassed to use these coupons. It doesnt mean youre cheap or poor, it means youre a smart consumer. Why pay more for the same item?

Look at the services you pay for in your home. Do you really need the super platinum plus cable package? Or can you live with the basic package? Do you really need unlimited calls and text messages, or can you live with a more basic cel phone plan?

You also want to avoid the I deserve it trap. You deserve to live a life free of debt collectors hounding you. Just because a television commercial tells you that you need to have the latest, greatest, newest (insert product here) doesnt mean you really do. If your cel phone is still working, why do you need to get a new one? Often, you can get a free phone when re-upping your contract with the cellular service provider.

When youre trying to economize, dont skip maintenance items because you need to have a new something. It will cost you more in the long run if you avoid the dentist for a few years than it would if you went in for regular cleanings. The same goes for your car. Oil changes and other basic maintenance are important and can help keep you from more expensive repairs.

Try only buying staples for a month. After two or three weeks youll gain a better understanding of just how much money you spend without a second thought. This will help you to get a better grip on your spending.

Another really good habit to get into is to set up a savings account and automatically deposit a set amount each week into that account. Even if its as little as $5 a week, youll be able to save up $260 with no effort on your part. If you have a regular job, you can set this up with direct deposit, and you wont even see it happening. Ultimately, you want to try to have between 3 and 6 months salary saved up for emergencies.

Finally, be a smart consumer. If its really important to you to buy something thats fine, go ahead and save up for it, or buy it if you have the cash. But dont feel you need to buy the latest $110 jeans just because theyre in style. Buy what you can afford. Your financial health is more important than having stuff. Good spending and savings habits will keep you from needing a payday loan in the first place. And if you can avoid being in that situation, youre ahead of the game!

About the Author:

Garrison Galbraithe, who has been writing about personal finances for over two decades, has created a guide to obtaining unsecured signature loans. He offers an abundance of information about signature loans at his site.

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