The Safer Way To Approach Payday Loans

Ask most people on the street if they would ever consider taking out a payday loan, and most would reply in a negative way. The reputation of payday loan companies and their excessive interest rates speak for themselves. However, the mere fact they exist at all is because some people need them.

Clearly, they can be useful for those struggling to get the money together. If you ever have to explore borrowing from a high-interest lender, the trick is to ensure you do so in a safe manner. Here are some tips for you to make sure you don’t fall into even more financial trouble when taking out a payday loan.

payday loan

What are payday loans?

Payday loans are usually short term loans of a minimal amount. Applicants will approach a lender and apply for a loan, which is then put into their account almost straight away. They are also called ‘no credit check’ loans, as the process is so quick and for anyone with poor credit ratings. However, this ease of access comes at a price. All payday loans tend to have exceptionally high-interest rates, and cost a lot compared to bank loans or other sources of financial help.

Who uses payday loans?

Payday loans are for people that are less well off – it’s as simple, and as harsh, like that. Low-interest rates are for wealthy people and those that can afford to pay everything off and still have plenty to spare after every paycheck. For those less fortunate, it’s a case of paying high-interest rates for your payday loan – and almost every other financial package.

Understanding the costs

Before you apply for a payday loan, it’s vital to understand what it is going to cost you. Almost every company out there has different interest rates and terms to deal with, so it can be a complicated process. But, one thing we know for sure is that payday loans are an incredibly expensive way of borrowing – even for a short term. Let’s say you need to borrow $100 until you get paid at the end of the month, and the interest rate is 30%.

If you don’t pay back $130 by your due date, it’s going to increase by another $39. If you fail to pay it back by the next month, that figure rises to $220 – after only 12 weeks or so! Leave it a year, and you can expect to pay interest on anything between 1000 and 6000 percent – an incredible amount of money. It’s for this reason that so many people get caught into a horrendous debt cycle.

How to use the payday loan system safely

Let’s not forget that payday loans can help people who have nowhere else to turn. And, as long as you make sure you pay everything back as soon as possible, you won’t suffer from the excessive rates. It’s still an expensive way to borrow, of course, but you can manage the impact. The trick is to find the best interest rates possible first of all. Matching services you can find here and across the web might be a good place to start.

But, you should never rely on someone else’s suggestion and always research the company before applying. Bear in mind that as soon as you apply, there is often barely any way of going back. It is never a good idea to borrow money if you don’t know when you can pay it back. The longer you leave it, the more it’s going to cost you – and payday loan companies can be ruthless in their pursual of people in debt. Always make sure you can afford to pay back the loan as soon as you get paid. It’s the only way to ensure you won’t end up paying through the nose.

And finally – be sensible

There will always be occasions in life where you need to find money. You might need to fix your car, for example, or you won’t be able to get to work to earn your wage. Payday loans provide you with an option, although it is not always the best one. Despite this, they can serve a purpose – but only if you can pay it back on time.

To avoid getting yourself into a tricky situation, it’s vital to reconsider your finances. It can be tough for those on low incomes, of course. But, if you can put a little aside every month for an emergency fund, it might help. It’s a far cheaper way to pay for your emergencies, and it will contribute to give you a robust financial buffer.

Logbook Loan- The effective Short Term credit Solution

Logbook loans can certainly be termed as the best short term loan ever. No wonder people are going for them with such confidence. Usually no one opts for a loan unless they are in grave need for short term credit. Owing to the fact that human life is completely unpredictable, no one can say when exactly they will come up with some urgent need.Availing logbook loans in order to suffice your short term financial requirement is actually a good idea.

There are numerous benefits that come hand in hand with logbook loans. The ease with which on can avail the loan is noteworthy. Unlike other loans, a logbook loans gets approved in a very short period of time. Generally a maximum tie period of 24 hours is all that is required to avail this loan. This helps individuals to take care of their short term credit requirement with promptness.

How it works

The way in which a logbook loan functions is fairly easy and simple. The only catch is the logbook of your car or the V5 registration. The loan provider provides a loan by keeping the logbook as a mortgage. One can avail a loan of up to half the value of their car.  However, in order to avail the loan the first thing that one ends to do is do a thorough research over the internet and find out the reputed logbook loan providers who function in their locality. The loan provider will fix an appointment with you wherein you will be able to ask them all that you need to know.

They will also ask you for some basic detail and check the validity of the V5 registration. Once this process is over you will be granted the loan, provided all your documents are valid and the loan provider has no doubts regarding your identity.

Basic requirements for logbook loans

Some of the basic requirements of logbook loans are as follows:

  • The applicant should be a permanent citizen of that country.
  • The applicant should be 18 years of age (minimums)
  • The log book must be registered in the name of the applicant.
  • There must not be any pending tax or insurance dues on the car.
  • The car should not be more than 8 years.
  • The car should not be damaged.

Advantages of Logbook loans

  • Some of the most imperative advantages provided by logbook loans are:
  • The loan gets processed very fast.
  • There are no credit checks or credit history check.
  • Even if here is a bad credit history one will be able to get a loan.
  • One can retain their vehicle and use it for their personal or business purpose.
  • The repaying terms are very easy.
  • The interest rates are fairly low as compared to other short term loans.

Ways To Help You To Stop Impulse Buying

Modern marketing system of stores, markets, and online shops are set up in such way to make us buy more. This is called an impulse buying.
Stop Impulse Buying
While impulse buying can be a tricky term, psychology states a number of reasons why an individual may go overboard with their shopping impulses. Are you wondering what is impulse buying about?
Well, you can check for the following signs either for yourself or in anyone around you:
If you love shopping – People who love to shop or ‘shopaholics’ are most prone to impulse buying. The urge and excitement to acquire something new overpower our abilities to understand the feasibility or our situation of buying something.
Loss aversion switch – This is when retail stores and online sites offer us ‘discounts’. Most of us get excited about discounts and nobody wants to miss it. The thought of missing out of such discounts is what describes our loss aversion switch, which retailers clearly take advantage of.
Twisted heuristics – Twisted heuristics come into play when online and offline retailers either offer products packaged in bulk or offer ‘free extras’. Such tactics prevent us from researching or even thinking further, activating our impulsiveness nature and push us to buy something that we don’t need.
The desire to save – While most individuals look to saving more than spending, this desire to save has encouraged retailers to introduce another form of marketing tactic. When there are discounts, retailers often also provide information on how much you can save. This motivates impulsive shoppers and buyers who don’t think much and instead, go with their impulsive instincts.
Consumption of novelty – The simple urge to either show-off what you have, somewhat similar to when people choose to buy branded clothes irrespective of their price and quality is another thing that triggers an impulsive behavior amongst individuals.
The above points confirm that yes; we do buy things that we do not actually need. The logical question arises: how can we cut down our impulse buying?

  1. Friends stimulate your shopping

Friends may be divided into two categories: the ones who help you resist buying anything and, vice versa, the ones who encourage you to buy everything in your sight. That is why it is important to know with whom you should go shopping just to prevent yourself from buying unnecessary things. Think of your credit card bill beforehand not to get surprised.

  1. Stay away from shops when you are stressed

If you are in a bad mood, stressed or disappointed, do not come close to the shops for you can fail to resist the willing to buy. The only possibility is to leave your wallet with cash, credit cards, or even ID and only then you may go for a walk to come down the nerves. Still, try to keep o  your way out of the shops. Some consumers try  making  their mood better with a help of shopping, some even use credit cards or short-term loans online to buy something. It’s not worth to borrow money and make financial decisions while you’re stressed because it can importantly harm your budget.

  1. Budget will save you

A lot of people use budgeting to save some money. Budgeting limits your finances but it’s very useful extent for keeping some money in your pocket. Writing all your expenses down will show you the exact statistics where you spend all your money. Cutting expenses can be hard, but it is worth of trying. You will view where all your money goes and this will give an opportunity to reconsider whether you spend it in a right direction. Find the courage to say “no” if your direction is not the one you’d like it to be.

  1. Do not agree at once!

The phrases as: “No, thank you” or “I will think of it” will save you. The pressure that we feel at the stores is quite high and sometimes we need the employees to pull their efforts down. The only thing, that you will notice, will be the look of disapproval in the salesmen’s eyes, but this will not make you purchase an unnecessary thing. Think twice before making a decision to buy anything. Ask yourself whether you really need it or you may get on without it.

  1. Special offers can be more tricky than beneficial

The marketing consultants are perfectly aware how special offers influence on the customers. That is why you can meet so many of them in any supermarket. Any offer is made specifically to make you open your wallet and spend money. The initial prices of products essentially differ from the ones that we see on the supermarket shelves. To sum up, try to review your attitude towards your expenses and think whether you would like to change the situation. The most important thing here if your willingness. .
Last thoughts:
A lot of people cannot fight their impulsive instincts, yet some people can actually bring about a change by fighting off this thing called ‘impulse buying’. Impulse buying can be dangerous for your finances, either in the present or future. The next time you have thoughts about purchasing that discounted dress across that window store, think again!