There are so many components when it comes to proper money management that you do not know which is the most important. There is one thing that most, if not all people, deal with and that is debt. Borrowing money can get us through situations as going to college, buying a house, purchasing a car, or even spending our day shopping in the mall.
Of course we must remember that borrowed money comes with interest and a lot of people fall into traps of mishandling their finances. If there is one thing you should do with your finances, it is to handle your high-interest debts well. Here are some tips:
Review your credit card and bank account statements
Looking back on what you spend for and tracking where your money goes is very important. Look out for unnecessary and impulsive purchases that you could have avoided. Check out the extra dress or shirt, daily coffee spending, or even lottery tickets. You can only resolve your debt if you avoid getting new debt.
Lower your monthly bills
You also need to review your monthly bills. Check if you are making most of your cable TV, cellphone plan, internet and other services that you pay on a regular basis. If you think you can live with a cheaper plan, then by all means do so. The small change you can save will be able to help pay off the debt you have.
Do all means possible to save. Instead of taking the car five times a week, why don’t you try commuting for three days. Check out coupons for groceries, lower your air conditioner’s thermostat, and turn off lights that you do not need. Once you save on these things, add the amount you use to spend for them to your monthly payments.
If the recession has taught people anything it has taught them that it better to keep their debts in check regardless of their income should the worst occur and you suddenly lose all or part of that income. However, most people still like the convenience of carrying plastic rather than paper when it comes to money believing that it safer to have a card to pay off your purchases rather than actual cash that is easily stolen. However, if you are going to pay for those purchases with plastic then choosing to use a debit card rather than a credit card can offer you some great advantages.
Probably the most important benefit of using a debit card over a credit card, according to Aleris D., is the fact that it is impossible to overcharge on a debit card. Since the money has to already be on your debit card before you spend it once your money is gone so is the cards usefulness until it is refilled. This makes it easier to stay within your budget and limit those unnecessary impulse buys as you can’t carry over any credit for a month or more. Debit cards are a great way to keep you out of debt.
You also are not going to have to pay interest on your debit card. While some places who issue these cards may charge you a small fee, is in nothing compared to the annual fees on a lot of credit cards and never have to worry about that interest on the unpaid balance adding up because you never have an unpaid balance when using a debit card.
Some people cling to using a credit card siting money back rewards as their reasoning. However, many debit cards also offer reward programs and some of these are money back rewards as well. Of course you are going to have to read the fine print, but if you know what you are doing and clearly understand the terms these money back debit cards may mean that you actually end up with money in your pocket rather than simply getting money back to apply on interest from those unpaid balances.
Most importantly debit cards can keep you out of debt. Like money when you use a debit card you pay as you go, which is the number one reason more and more people are choosing debit over credit cards these days. With rumors of double dip recession on the horizon no one wants to be caught with a huge credit card debt to pay off and a debit card can help you stay debt free should the worst happen.
It is a different world we live in these days and that means everyone has to do their best to spend a little smarter and live within their budgets on a daily basis. Debit cards give you the convenience of using plastic without the risk of falling into credit card debt. They really are the ideal solution for getting by and making purchases in this all too shaky economy.
Payday loans are a type of loan that you can get to help you out in case of an emergency and you go not have the money. These types of loans are usually for two weeks because most people get paid every two weeks. There are some payday loan companies will let you go a month if you receive Social Security or some other type of benefit that you only get paid once a month. As with any type of loans there are pros and cons to getting them and it is advisable to know what they are before you even consider getting one of these loans.
Pros–Most of the payday loan companies are easy to use and require minimal information to be eligible for a payday loan. Most of the information that they require are a paycheck stub, current bank statement, a blank check, and proof of address. You will also need the names and address of references, but how many you need will depend on the company. If you are receiving some type of benefits you will need a statement telling them what you are getting. If it is direct deposited the company may just take the bank statement showing the deposit as proof.
They also offer easy re-payment plans and if you cannot afford to pay it back on the day it is due, you repay the loan including the interest and then you just reapply for another two weeks. How many times you can do this depends on the state where you live. Most of the time you can be in and out with an approved payday loan within thirty minutes, maybe less. It will take a little longer the first time because you have to fill out an application and everything has to be checked out before you are approved.
Cons–One of the biggest cons is the interest rate. For example, if you borrow one hundred dollars you will pay back one hundred fifteen dollars so for a loan for two weeks you are paying fifteen dollars in interest. Some may say that is not high interest but for a two week loan it is a little high. You do have to be careful that you do not get caught up in the merry-go-round of payday loans were you are depending on them to get you from payday to payday. If you do not pay off the payday loan in time there are some hidden charges and fees that can occur. Since there is no credit check performed the lender is taking a risk of that person paying back the loan so that is why their rates are higher.
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