13 Oct 3 Reasons Why You Keep Needing Payday Loans
3 Reasons Why You Keep Needing Payday Loans
We all have to borrow money from time to time. Our car breaks down in between pay periods and we need a quick cash fix. Perhaps your furnace or AC goes out in the dead of winter or summer. Any of the scenarios may require an immediate cash fix that an online installment or payday loan can solve. There’s nothing wrong with borrowing money when it is to cover a crucial expense.
That being said it isn’t always wise to utilize high interest loans for every single shortfall in cash flow you might encounter. If you are constantly going back to payday loans to solve everyone of life’s challenges, you are likely to get yourself trapped in a cycle of recurring debt. Instead, take a step back and evaluate if one of the following applies to you. If so, it may be best to resolve it promptly before considering more debt.
You’re Living Outside of Your Means
If you are consistently spending more than you earn, that’s going to create problems for you financially. This could be because you simply enjoy your hobbies too much, or you have incredibly bad luck with emergencies and so forth.
Evaluate your monthly spending vs income. If this number is negative, it is time to evaluate your spending decisions to see where you can cut back. Borrowing from payday loans constantly to rectify the excessive spending will only create a bigger and bigger issue down the road.
You Don’t Budget
If you are living outside of your means, there is a good chance you don’t budget as well. It’s important to know where and when your monthly spending goes to plan accordingly. Sometimes cash shortfalls aren’t directly linked to over spending. It could simply mean you aren’t paying your bills at a schedule that aligns with when you get paid. Try making some changes in when you’re paying your bills and other expenses throughout the month. See if spacing them out is enough to solve your problem.
You Don’t Save or Plan For Emergencies
Everyone has emergencies. They also tend to come when we least expect them. There’s also the old saying “when it rains, it pours”. Meaning: if you have one unexpected emergency, don’t be surprised if you happen to have another shortly after.
The key here is to remember that everyone faces unexpected challenges. Make sure you set aside a portion of your monthly income into savings each month to plan for these expenses. No number is too small to start saving. Often times it comes down to just a few to just couple hundred dollars to solve these challenges. Even twenty dollars a month could quickly build up to a useful amount.
The common thread with all three of these items is self awareness. If we find ourselves constantly utilizing payday loans and other online installment loans to solve our financial challenges – there is likely a deeper issue at play that needs evaluated.
Don’t forget to ensure you’re making smart financial choices when it is necessary to get a loan. Avoid paying excessive fees and high interest rates for short term loans. Utilize an online installment loan like Credit Fair-E’s product where you have 12 months to pay the loan back on a schedule that works for you.