How would you change your daily habits in order to successfully afford your short-term payday loan payoff? It would be interesting to know how much money gets wasted out of each paycheck on spending which is never tracked in a typical budget. How frugal is the average household? How much money is spent each day which is not covered by one of the budget categories? If this money was accounted for, would the typical payday loan customer have better luck getting their debt paid off or would these same people even need a short-term loan in the first place?
How often do you stop off at the store for a cold drink, a pack of smokes or grab a bite to eat through one of the drive-through lines on the way home? Where does this money come from? Are you spending cash, using your debt which comes from your bank account or charging the bill to a credit card? Where the money comes from may help you analyze your money management system. If credit cards are supplementing your 'extra' charges for charges such as these it may help to take the next step needed and figure out which category will support the payoff. If you do not pay off the creditor in full, the interest charges for these small purchases will have you spending more than their worth.
If you depend on short-term money in order to make good on unexpected costs but you continue to spend on daily extras, how do you manage to pay off the payday loan in full? In order to keep this fast money loan the most cost effective approach to a money emergency it will have to be paid on the original due date. Anything extended or rolled over will accrue additional interest charges. Take a closer look at where your monthly income is spent.
If you cannot account for every dollar or even every penny of your hard earned income, it may help you take out a pen and paper and begin to keep track. Use your notepad on your tablet or smartphone if you are more inclined to keep track that way. Every time you buy a pack of gum, refill your coffee, purchase an app for your phone or cover a overdraft charge on your bank account, mark the expense down. Take it a step further and write down how much interest you are paying each month. Once you see how much money goes out of your account to pay for maintaining a debt balance, you will most assuredly want to make a change.
Look at tracking expenses as a positive way to manage your money. Take the hassle of recording every penny spent into a challenge to build an a better financial future for you and your family. Get your children involved so they will learn some basic financial rules. if you don't have the money, you don't spend it. This is a tough rule to obey when there are so many third party money opportunists. Children need to learn early on that spending money is not a rite of passage but an income privilege.
If you were to rework your budget in order to fold into these extra daily costs under one of the funded categories, would you be able to refrain from spending extra somewhere else? If you needed to use a direct lender or charge on credit cards, would you be able to work out any type of reallocation from other budgeted areas in order to make the full safe payday loan payoff or keep from having charge card balances stretch out over several months or years? It would make smart financial sense.