Thursday, May 31, 2012

Skip That Payday Loan

Payday loans are loans that are taken out against a future paycheck. They are quick source of money in an emergency, but you will find that relying on them too much can have some seriously detrimental effects to your pocketbook! If you have been relying on payday loans recently or if you want to stay away from the entirely, check out these steps that can help you find alternatives.

Pawn Something

With the advent of shows like “Pawn Stars,” pawn shops are doing better than ever. At a pawn shop, you can bring in items with good resale value and have them held for a certain sum of money. The pawn shop essentially gives you a loan, using your property as security. If you do not pay the money back within a certain time, the item is then given up for sale. Pawn shops also allow you to sell items outright. Electronic equipment, jewelry and clothes are all fair game for pawn shops.

Borrowing From a Family Member or Friend

Borrowing money from someone close to you can be a slightly nerve-wracking experience. We´ve all heard stories about money destroying friendships and families, but the truth is not so dire. Lay out your current situation for the person you wish to borrow from, and tell them about your plan to pay them back. Once you have laid out everything for them, it is up to them if they wish to loan you the money. If you stay calm and if you are understanding if they have to say no, you will find that things can go very smoothly indeed.

Yard Sale

If you live in an area that allows it, simply put a price on everything you don´t want and have a yard sale. A yard sale can be thrown together in a weekend, and it can even be a fun way to meet your neighbors. If your things are desirable and in good condition, you might be surprised by how much money you can make in a small amount of time. For the best results, open your yard sale early in the morning; yardsale fans get up early for the best deals.

Budget Tightly

If you notice that you are going over in terms of expenses every month, it is time to figure out why that might be. Sit down, make a list of all of your expenses and tally them up. Then tally up the money you have coming in. If the expenses are larger than your income, you need to start seeing where you can slash your expenses. This is not easy, especially when you have to choose between things that are equally important, but it can help you avoid the need for payday loans.

Eat In

It is extremely tough to muster up the energy to cook at the end of a busy day, but regularly going out to eat will take its toll. Even going to a fast food place adds up, and eating at home is invariably cheaper. One way to make sure that you can save your cash is to buy plenty of quick foods, like pastas and beans, things that can be quickly heated up in a microwave or on the stove. On your days off, consider making a big batch of food and then freezing it, creating your own instant food!

If you want to avoid payday loans, it is not always easy. Make sure that you consider what your regular habits are, and think about how you can save more money. A small amount of foresight and the option to look into other choices can help you skip the payday loan office from now on.

Guest author Sharon Koontz is a financial guru and freelance blogger writing on behalf of

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