You know we never really wanted to sound sad and negative, but with everything that’s been going on around us, it does dampen your spirit. Often, we’ve given tips on how to wisely spend money, how to earn it, and even save it. But these trying times might also put you into a situation where you really just don’t have enough. With the crude oil price hike, surges in prices of commodities follow. And yes, the world hasn’t recovered yet from the recession caused by the pandemic lockdowns.
If you are able to work offline or online and still have enough money to make each day go by smoothly, be thankful. A lot of homemakers and breadwinners lost their jobs, others got work hours cut back, and still others, furloughed. But not everyone has savings that could be stretched until things get better, a lot of us has mouths to feed, and kids who are also stressed from homeschooling and less outside time.
Many of the world governments tried to help families with subsidies like tax cuts, forbearance (private companies too), and even cash incentives. In economic theory, subsidies help, somewhat, to offset market failures and externalities to get better economic efficiency. It did help short-term but in the long run, it isn’t enough. So people tend to borrow money at some point.
While getting money nowadays for your current needs is not difficult to do, there are still factors you need to consider. Banks are no longer the only places where you can get loans and other forms of credit. There are such companies that offer loans online, without requiring any financial documents or extensive credit checks.
What are Payday Loans
These loans are known as instant decision loans, payday loans, or same day loans. These loans have been a welcome development in terms of consumer finance. In fact, industry reports show an upward trend in the number of consumers availing of these loans through the years. While this facility allows consumers to get their money virtually without any waiting time, enjoying all the benefits of this loan product involve some serious thinking.
It’s not “free” money
This is what financial experts always stress. The ease by which you get the money in your bank account makes it easy for you to forget about the obligation that you get at the end of your loan tenor. It is important to understand that payday loans are meant to be emergency loans.
These loans should serve to bridge the gap between current financial resources and the next cash inflow. You take out this kind of loan when you have an urgent expense now that you do not yet have the money for, but are expecting to have the funds for it when you get your next pay check. Given this nature, you have to be ready to pay for the amount of your loan plus the interest charges when your next salary comes.
Payday loans are financial obligations. Just as you did not have to wait to get your loan proceeds in your bank account, your lender also expects you not to make them wait on your due date. You have to pay your loan accountability in full when you get your salary.
Otherwise, your loan repayment amount could easily grow to almost triple your original loan amount within a span of 61 days from the time you got your money. Ensuring that you have enough money to repay your loan is something that you should do before applying for an payday loan. You can click here to know more about what you need to do to take advantage of payday loans.
A Better Alternative to Payday Loans
Payday loans have high interest rates that might make you worry instead of being at ease for having money to spend. The best alternative to payday loans is to not borrow at all. But that’s not always the case.
Of course, there are a lot of other ways to get money when necessary. One, you can ask a family member or a close friend to lend you the money, and I doubt if they would ask for interest.
There are also ways to avoid being financially depleted, but if you are already nearing 0 balance, you can only opt to borrow. Pawn loans are quick and don’t require credit score checking. You just need to have an item to pawn, and you can also get better repayment options.
But a better payday loan alternative is getting a credit line from a direct lender such as Polar Credit.
What is Polar Credit
Polar Credit is a credit line, similar to a credit card. They offer a “line of credit” you can apply for. A line of credit is like having an overdraft – which is a form of a credit provided by a bank when the account reaches a zero balance.
Unlike some payday loans, you do not have to pay a fee when you avail the services of Polar Credit.
How does Polar Credit Work
With Polar Credit, you can apply for a credit line through their simple online form. Your data including credit history and also your income and expenditure will then be assessed. Once you get approved, you’ll be offered an initial credit limit based on your financial situation.
Your credit line can be accessed in your online account and you can withdraw money directly into your bank account as and when you need it. You will only pay the interest on the amount that you withdraw from your credit line, and you can do this by either making a minimum monthly repayment or you can repay the full balance.
Setting up a Polar Credit account is free, so is maintaining your credit line. The only payment you’ll make is when you borrow money, interest accrues only on the amount you used. You can leave the rest of the money on your account and it will remain as is.
It’s 2022, and while there are big developments to doing transactions online than physically going to an office, we still have a big problem with plastics.
Not so with Polar Credit. Since the money is withdrawn directly into your bank account, there’s no need for a separate plastic card to access those funds – which helps to reduce plastic waste.
For more information on the many advantages of this credit method, visit Polar Credit.
Managing Finances and Other Helpful Tips
If you find your salary gone after a few days, you seriously need to budget monthly expenses with the help of family, friends or, a financial advisor. To say to simplify one’s means of living is easy but not very much so in practice. Look for other better alternative to payday loans if Polar Credit doesn’t appeal to you, but we doubt that.
You can start now to save up so when days get tighter, you have something to take out. Always save even as little as 50 a month when your salary arrives, put this money in a sealed container so you won’t be tempted to take any out. You can also look for friends to make a lending circle, you just have to assign one who would collect a set amount of money monthly and then you take turns withdrawing that money every month.