Finance Roll

How long will it take before holiday expenses catch up to your bank account and you are back applying for a payday loan? That is the hard part about depending on credit cards to pay for all the extras. It's so convenient to spend using plastic and even easier to lose track of how much money gets spent.

How many credit card statements will creep in with full balances spent, maybe a few with over limit charges or interest increased because of the new debt load? Monthly minimum limits will definitely be larger no matter what costs are subject to an individuals' situation. For those who live paycheck to paycheck, the extra monthly demand will press harder on previously struggling budgets. It will also take some of the cushion out of those budgets which carried a little extra. Savings accounts are always the first to be adversely affected by extra money demands.

How does one continue to pay off regular monthly expenses, squeeze in the extra holiday costs and keep money heading into the savings account? If you are not bringing in extra income, many folks will be lining up at the payday loan store to keep the budgets rolling through a few more pay periods. One area that many people avoid is cutting back.

Attack the food budget to quickly cut back on expenses. A PEW study last year presented the findings that people would rather apply for a payday loan than cut back on their monthly expenses. Replace the upscale coffees and applying the $20 or $30 dollars a month on credit cards is a much cheaper solution than a payday loan. Pack your own lunches and avoid dinners out for a few weeks while you catch up or pay down towards the extra bills. You would be amazed at the savings to be had, and that is before the grocery list gets some cutbacks.

Are all of these inconvenient to a person's lifestyle? Sure they are. Many people live their daily lives on the go and do not stop to make food from scratch or actually brew a morning coffee. These conveniences carry a high price when payday loan fees and reoccurring monthly credit card costs keep any extra money from feeding into your savings account. There is a price to pay for convenience.

A short-term loan charges a fee for their money. It's another example of paying for convenience. Fast money with no credit check will help many keep up with any extra impending costs. The long-term options tend to be much less cost effective than its counterpart. Credit card debt and the affects it has on a credit score is often times a reason why someone would be seeking a low cost loan in the first place.

When you have overspent and it is time to juggle your income in order to fit the over-scaled budget, a payday loan is one option to turn to. A person looking out for their financial future will shop around and find the best solution with a responsible lending company to bring relief to a financial crunch; but a payday loan will not solve a debt problem.