When it comes to saving money, a little know-how, some commitment, and practice all make the task easier as time goes on. Setting your child up with the opportunity to start saving money from a young age is an awesome way to ensure that they are prepared to make smart saving and investing decisions once they start working as an adult in the real world. Assigning paid tasks around the house and using jars as “bank accounts” for saving and spending is an effective foundation to start with. Here, you’ll learn tips, tricks, and techniques that can be implemented as your little one ages to accommodate their learning abilities and maximize their chance of saving success in the future.
Teaching Your Little one to Save Like a Pro
How Can You Use Payday Loans Responsibly?
Claudia Bravo
Everyone falls on hard times once in a while. Maybe your car broke down, and you need it running to bring in some money. Maybe you're just a few dollars shy of being able to join your friends on an impromptu trip to Vegas. Whatever the reason behind your need for a few extra bucks payday loans from lenders like Money 4 You can offer a convenient solution. They've gotten a bad reputation in recent years because they have often been used irresponsibly. Here are a few ways payday loan customers have gotten themselves into a pickle.
Having No Repayment Plan
Before you take out a payday loan, you need to be very careful about budgeting for the repayment. Payday loans are short term, meaning that the lender will expect repayment in full within no more than two months. The terms of payday loans vary. Most loans are meant to be repaid in full within two weeks, while others have smaller payments over a month or two. The quickest way to take a good thing and make it go sour is to not budget for the repayment. This can create a vicious cycle wherein you are paying exorbitant fees to use your own money.
Responsible borrowers know without a doubt that they can pay back the loan within the required terms.
Borrowing too Much
A borrower can expect to pay about $15 for every $100 borrowed, sometimes more. When compared to the outrageous costs of bouncing checks (or, heaven forbid, multiple checks), that amount looks fantastic. Your bank will likely charge you a fee for insufficient funds, and a returned check usually means a fee from the merchant to whom you wrote the check, which can add up rather quickly.
When you consider that the payday loan fee amounts to an APR of almost 400%, you might start to see things a little differently. Other options have lower rates, but are usually not available on an emergency basis. When you're considering a payday loan, keep in mind that they have high interest rates, and borrow the least you can afford to borrow, even though it might be tempting to borrow an extra $100 for a comfort cushion.
Rolling the Loan Over
If, when payday rolls around, you find yourself still in a financial bind, rolling over your payday loan is an option. This extends the term of the loan, which can give you the break you need to catch up, but it also increases the fees associated with your loan. If you roll over your loan multiple times, you may find that you pay many times the principal amount, which can put you behind on other expenses.
Rolling over your loan may help you if you take out a loan and then have another emergency. It is rarely the case that such action is beneficial to you, though. It might serve you better to negotiate repayment plans with your other creditors or utility companies in order to avoid rolling over a payday loan.
Not Reading the Fine Print
Most people know that reading the fine print on legal documents is very important. Payday loans are no different. Everything you need to know about the term of your loan is in that document, and you can avoid additional fees and financial distress by fully understanding the terms. If you have questions about how your loan will be repaid, ask the lender before signing.
When used responsibly, payday loans can help avert financial disaster. The trick is to cover all your bases by making sure you can afford the loan and understand the terms. Just because you're in a tight spot and you make use of a payday loan doesn't mean you'll be forever trapped in a cycle of debt.
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