The Value of Payday Loans
Instant payday loans are a lifeline that can help a worker and their family make ends meet from the time they get one paycheck, until they get the next. In today’s economy most families have trouble making ends meet. Despite these problems it is more important than every to make payments on time, placing a lot of stress on the entire family. The danger is that once a worker starts missing payments, it becomes too easy to let that event become a habit. This results in reduced credit scores and depletion of the amount available for savings.
How to Keep Payments Current
Do not overlook the benefits possible from well managed payday loans. Sit down and review how many of your recurring monthly payments were made on time in the last year. How many utility, home loan or rent payments and vehicle payments were made on time? Compare the number made on time and those that were late. Add up the total late payment charges in order to see the real cost of too many late payments. The total amount these late payments cost you over the period of twelve months may come as a big surprise to you. Each of the late payment fees may have been almost insignificant by themselves, but totalled together the amount can be far from insignificant.
Every amount charged to you as a late payment fee, reduces the money you have to make future payments on time. In effect, the fee costs you a few dollars but you need to replace those dollars in order to have them for future payments too. Ben Franklin was correct, “A penny saved is a penny earned.” Saving the money you are spending on those late payment fees could eventually accrue to an amount usable for a future emergency, some future vacation days, or any thing else your family needs. It is a widely accepted home finance principle that you need six months salary put aside in savings. Avoiding late payment fees, by the use of instant payday loans can help you reach that savings goal.
Making payments late also hurts your credit score. Making late payments repeatedly will cause a drastic drop in the credit score that your bank, your creditors and even your employer can see. Low scores can even make it more difficult to get a new job, should you desire to change employers, or become one of the many unemployment casualties of this terrible economy. Even worse is the higher interest rate you may incur, due to a lowered credit rating, on your credit card use or any future home or vehicle mortgages you need. You can avoid late payments, keep your credit score high and boost your credit rating if you use instant payday loans responsibly.
How to Use Instant Payday Loans Responsibly
When you have an urgent need for cash, an instant payday loan may be the most effective and easiest answer to your problem. Instead of making a payment late, and after the due date, take the cash from your instant payday loan to cover the payments due, and help you make it to the next paycheck. At the same time review your spending patterns and make sure you understand that payday loans are meant as a helping hand, a temporary solution to your financial problem. An adjustment to your weekly and monthly expenses, or additional pay in your next check from extra hours worked, may help you get ahead of the curve. The important thing is the help that you get to cover your payments without being late, and make it to your next paycheck.
You should resolve to never make another payment late, to save those late payment fees for future needs or to help you get ahead of the gap between your pay and your expenses. Resolve to never make late payments again, to increase your credit score and make it easier in the future to get other lending options. Managed in the proper way, which is what you are doing when you make payments on time, is a helping hand on the road to financial responsibility and freedom.