When Should I Take Out A Payday Loan?

 

When should I take out a payday loan?

Payday loans are short term loans which are designed to be paid back on your next payday. Many borrowers take out these loans when unexpected bills arrive and they don’t have access to the funds to be able to make payment. The good thing about payday loans is that they are usually made available straight away and in general, you won’t have to complete any paperwork to receive the funds. However, it is important to give careful consideration to taking out a payday loan or any other type of credit, for that matter. These are some points to think about when deciding on whether to take out a payday loan.

 

Do you really need it?

The first important point to think about is whether you need the loan. What is the reason for requiring extra funds? If it’s simply to buy yourself something new or to go on holiday, then you might be better off just doing without it, rather than getting yourself into more debt. However, if it’s a necessity, like paying your rent or buying food – then it is definitely worth considering, if you have no other options.

 

Can you pay it back?

It may seem like you have a long time to pay your loan back, but we all know how quickly time can go by. If you are considering taking out a payday loan, have a good look at your budget first. Can you afford to pay it back at the end of the month? If you can, will you have cash left over for food/rent etc.? You should only ever take out any credit if you can realistically afford to pay it back. If not, it is important to look at other options. Friends and family might be willing to help out and will probably be less strict about repayment.

 

Eligibility

In order to be eligible for a payday loan, you should have a bank account and be employed. In some cases, you may need to undergo a credit check to get your loan. However, this is less strict than it would be with other financial institutions. You may also need to prove your employment status, so be prepared to have documents ready to send over to the payday lender.

 

What are the advantages?

We hear a lot in the press about payday loans compared to other forms of credit and how bad they are, but really payday loans are no worse than dipping into an overdraft. If you pay your loan back within the specified period of around 30 days, you won’t incur any further charges. The good thing about payday loans is also that you can get the loan within a matter of hours or days. If you need access to cash urgently, these can offer a lifeline to many. Unexpected emergencies can happen to anyone and most of us are not prepared for these incidents, even if you usually have a lot of spare cash.

 

What is the next step?

If you decide to go ahead with a payday loan, you would fill out the application which will ask general questions about your background and employment status. You will decide on how much to take out and for how long and this will either be accepted or rejected. You may be offered less than you asked for, but this may increase in the future, if you decide to take out another loan and you paid this one back on time.

 

How to save yourself from future problems

If you find yourself needing a payday loan – it is not the end of the world, but you should use this as a clear sign that you need to take better care of your finances. Borrowers take out payday loans as a last resort and usually because they don’t have any other available funds, so you need to get better at budgeting if this is the case. A budget is the best and most practical solution to having to take out any kind of credit in the future, including payday loans. If you manage your budget effectively and reduce your wasteful spending, you will be able to save more and cope with unexpected bills or expenses which might arise.


Why Renting Property May Be A Wise Financial Choice

 

Why renting property may be a wise financial choice

If you are struggling to get your foot on the property ladder, due to poor credit or a lack of finances – it may not be a bad thing. Although we live in a society where buying a property seems to be a factor which makes people feel like they’ve made it in life, it is often not all it cracks up to be. You shouldn’t feel disheartened if you can’t buy a property; these are some reasons why renting might make more financial sense.

 

Greater flexibility

One of the major benefits of renting a property instead of buying is that you have much greater flexibility. If you have bad neighbours, for instance, you can just up sticks and leave the property, without any hassle. If you decide to move abroad or get a new job further afield, you can do it at the drop of a hat when you rent. When you buy property, you are tied to it and still have the burden of paying a mortgage, even if you decide to move on. If you are the type of person who doesn’t want to just settle in the same place for the rest of your life, renting is probably a more favourable option for you.

 

No repair costs

If something goes wrong and you own the property, you are responsible for taking care of the costs. You need to pay for repairs and any general maintenance of the property. If you rent, your landlord or letting agent is responsible for picking up the costs. These costs can be quite substantial at times and can eat into your savings, or cause you to need emergency funds, such as payday loans. If anything goes wrong and you rent, you just call up the owner and let them know and they should take care of it and cover the costs.

 

More savings

It might seem that renting a property is throwing your money away, but the money you save on insurance, repairs and the like can help towards other things. You can actually have more savings when you rent, as you only have the cost of living to pay for – no other costs. Owning a home can be extremely expensive and you don’t actually own it at all until the mortgage is completely paid off. You really don’t have much more security when you are paying a mortgage. If you can’t keep up with the payments, you can still be asked to leave.

 

Good area

You may not be able to afford to buy a property in an area you love, but you can have this option when you rent. In the same way that renting a car gives you access to vehicles you could only dream of owning, the same applies to renting a home. You have a much better chance of being able to afford to stay in your dream home if you rent, rather than buy.

 

No credit check

When you let a property, you generally won’t be required to undergo a credit check, or if you do – it’s usually not a strict one. The prospective landlord only wants to know that you are earning enough money to pay the rent, they are usually not too bothered about anything else. This is not the same as taking out a mortgage, as you need to undergo a strict credit check before you will be accepted and this is why so many people simply can’t afford it.

 

Smaller deposit

The size of the deposit is a major reason why people can’t get on to the property ladder these days, but with renting, you don’t need to worry about this. Although you still need to pay a deposit, it is usually only the same amount as the rent payment, which is significantly less than a deposit to buy a home.

 

Less stress

Overall, renting a property can be a lot less stressful than owning. You have the freedom to come and go as you please, which means you don’t need to put up with nuisance neighbours or anything else which might be causing you grief. If you want to leave, you don’t need to wait until the place has sold and, quite often, this can take months or even years!


5 Tips For Becoming A Smart Spender

5 tips for becoming a smart spender

These days there is a lot of emphasis placed on what we buy and how much we spend. The type of car you drive and the home you live in are common questions people will ask you. It is not really about how we spend our money, but what we spend it on that seems to matter to most people. However, you need to take a lot of consideration into your spending habits and how much satisfaction you are really getting from them. If you love nothing more than settling down to watch movies every night, an expensive TV is probably a worthwhile investment. However, if you hate being in the one place and love exploring, it is better to spend your money on doing this, rather than material things. These are some tips for becoming a smart spender.

 

1. What makes you happy?

You have probably heard lots of stories about celebrities who seem to have it all, material wise, but then check themselves into rehab every other year. They are not happy because these material things are not making them feel happy. If you want to become smart at spending, make sure you spend your hard earned cash on things that will make you feel better. If this means travelling the world – do it! Or if you want to own a coffee shop, save up and do this instead. Think about when you are at your happiest and spend your money on these things. This is what is most important.

 

2. Wasteful spending

Look at the cash you are spending each day and where you are wasting money. You will probably find that you are wasting a lot on things which aren’t really bringing anything to your life. For instance, are you buying lunch every day or picking up a coffee on your way to work? There is nothing wrong with doing this as a treat, even once a week – but doing it every day won’t create the same level of happiness and it’s a lot of wasted money which could be spent on a better future. The little amounts add up, so be careful of wasteful spending.

 

3. Quality of life

Getting to a good financial position is not about what you own, but the quality of your life. Possessions don’t really mean anything, but a good quality of life is what you want to aim for. Take time to consider what sort of quality of life you want and it doesn’t matter if this means you really want to have an outside pool – they are your dreams and you can create any goals you wish. A great quality of life is where true happiness lies, so work out what yours is and stick to that. A vision board is a good way to create the life you dream of. Think about the quality of life you want and end any spending habits which are holding you back.

 

4. Spending habits

It is a good idea to take time to consider what your spending habits are like. For instance, are you spending a lot of money when you feel down or depressed? Are there any specific patterns to your spending behaviour? If you understand why and how you are spending your money, you will be in a better position to make changes to improve your spending. It may be that you spend money like crazy as soon as you get paid and this is maybe the time when you should organise other things to do, so you don’t have the temptation.

 

5. Save your cash

It may seem like it’s easier said than done but even if you can manage to save a little every day, you will greatly improve your spending habits. If you think about what you are spending your money on, before you spend it and put the money away instead, you will become a much smarter spender. For instance, if you were going to spend money on a taxi, but decide to get the train instead – put the money away that you would have spent and save it up. If you do this every day, not only are you becoming better at spending, but also at saving and you will definitely reap the benefits of this in the future.


6 Ways That Money Can Help Improve Happiness

 

6 ways that money can help improve happiness

 
It is true that money can’t bring happiness, but it can definitely help – despite what others may tell you. If you are constantly worrying about bills coming through the door, it can be highly detrimental to your health and self-esteem, which as a result – affects your levels of happiness. Money is necessary in life – we simply can’t survive without it, but finding true happiness is more about how you spend your money, rather than how much you have. These are some ways that money can help to improve happiness and why you should start taking better care of your finances.

 

1. Less stress

Money is one of the main reasons people feel stressed. It doesn’t mean that you will instantly be stress-free if you have more money, but it can significantly reduce your stress levels. If you don’t have the constant worry about how to pay your bills or the dread of the phone ringing, you can have a much easier and more peaceful life. Money may not completely eradicate your stress, but it can definitely help.

 

2. Spend on others

There is nothing nicer than treating a loved one to something nice and watching their faces as they receive it. This is one of the best feelings and it is one of the ways money can improve happiness. If you are the type of person who would rather give to others than receive, you will get a lot of satisfaction out of this. It may be that giving some money to charity would make you feel better, so this is an action you can take to increase your happiness or just simply taking a friend for a coffee can also improve levels of happiness. Spending money on others and allowing them to enjoy it, can have good, positive effects on your own well-being.

 

3. Travel the world

Experiences are often a lot more special than material things – but the best experiences require you to spend money. You can’t see the world and experience everything that life has to offer if you don’t have any cash to do it. You can choose to spend your money wisely if you have it and this includes making the most of all those incredible experiences. Money can bring about new opportunities – so while it doesn’t guarantee happiness, it can give you experiences which will improve your happiness.

 

4. More spare time

If you have money behind you, it can give you the chance to spend more time with your family. It can give you the opportunity to take more time off. For instance, if you have your own business. It may allow you to retire earlier than you would if you didn’t have the extra cash or it may be that the extra money can be used to buy a home which is closer to work, so you have more time with your family. Money offers freedom and if used in the right way, it can improve your family time and give you a better work/life balance.

 

5. Greater confidence

Financial problems can have a lot of negative effects on levels of self-confidence. If you can’t afford to pay your bills or you find yourself missing out on lots of nights out or weekends away, it can be really damaging to self-esteem. We live in a world where most of us like to get out and enjoy ourselves, experience new things and see the world. If you want to do these things and you can’t afford it, it can reduce levels of self-confidence. A better financial position can bring greater confidence, especially if you have earned your money through hard work.

 

6. Better relationships

Money problems are one of the main reasons couples divorce these days and with all the financial pressures, such as owning a home, having a car and basically keeping up with neighbours – a lack of finances can be a huge burden. If money isn’t an issue in your relationship, it obviously can’t ensure it will work out but it can help. Arguing about money is the last thing you want to be doing, you want to just be enjoying each other’s company. When you take this burden away, it is one less thing to cause problems and friction. A better financial situation can help improve relationships.