Take A Second And Just Breathe: What To Do During A Financial Emergency

Finance (Photo credit: Tax Credits)

Financial emergencies happen everyday, and not every family is prepared to handle the emergency when it happens. Sometimes you will find that you need help to get through the rough patch and you might feel a little overwhelmed. 

 When you face financial difficulties, the best thing that you can do is take your time, breathe, and approach the problem methodically. When you do that, you will be able to limit the damage and move forward without mortgaging your future.

Step One: Calm Down

The first reaction that you might have when you get into an unexpected emergency is panic. You want to take care of things right away and get on with your life, but the more stressed you get, the more likely you are to make bad decisions. Take an hour or so and just sit back and assess the situation critically. 

 What is the emergency? How long do you have to take care of it? Is it just a monetary issue or are there other things that you need to do as well? Once you know what the situation is, you will be able to make decisions with a clear head and move quickly to the right solution.

Step Two: Communicate

The next thing that you need to do is communicate your issue. If you are married, make sure that you and your spouse are on the same page. If it is something that affects roommates, call a house meeting and let everyone know what is going on. 

 The other person that you need to communicate with is the person who is asking for the money. Utility companies are often willing to work with customers who need an extra day or two to get payments in, and landlords would much rather keep a renter than try to find someone new. 

 Make sure that you let the person know that you are doing what you can to make payment and give them a timetable for when you will be able to get them their money. Do not be vague, or else they might think that you are just trying to stall; the more concrete details that you can provide, the more likely it is that the person you owe money too will work with you.

Step Three: Solve The Problem

The last thing that you need to work on is solving the problem. There are several different ways for you to get the money that you need to take care of a financial emergency. 

 You can go a traditional route and try to get the money from the bank, but if you have poor credit, this is probably not going to work out. If you have some things of value that you can live without for a short period of time, then you can always go to a pawn shop and get a pawn loan for those items. 

 The problem is that you will not get anywhere near what the items are worth in return, and if you cannot pick up your items when the pawn period is over, you will lose them. The best solution is probably going to be a payday loan. With a payday loan you can get a short term cash infusion that will not wreck your future financial security. You will be able to get money based on the amount of money that you can afford to repay on your next payday, and then your commitment is over.

Getting through a financial emergency takes time and patience. You need to approach the situation with a clear head, so that you make the best decisions and you will be able to move forward once the emergency is over. With the right approach, you will be back on track in no time at all.

Financial Tips for Seniors Getting Payday Loans

Payday loan: A short term unsecured loan intended to cover the borrower’s expenses until they receive their next paycheck.

Payday loans have proven a popular way to borrow money for some time now, and not only amongst the employed, but also amongst senior citizens. Although payday loans have proven popular, seniors are still advised to exercise caution when applying for a short term unsecured loan because some providers offer interest rates that aren’t as competitive as others. Therefore, seniors need to be aware that there’s often a substantial difference between the offerings of one payday loan provider and the offerings of another.

Perhaps the best advice that can be given to seniors interested in payday loans is to shop around. There are numerous providers of these financial products and some are simply a much better choice than others because they offer better interest rates, they make it plain how much the borrower must repay and they also make their terms and conditions clear right from the start. Moreover, seniors are also encouraged to ask themselves if they really need a payday loan and whether they’re sure they’re comfortably able to make repayments.

Provided seniors need to apply for a short term unsecured loan and they can comfortably afford to make repayments, they should take the following advice into account when sourcing payday loan providers.

1. Know the risks

Before seniors apply for payday loans, in fact before they even begin sourcing short term unsecured loans, they’re encouraged to familiarise themselves with the risks involved. Provided that they are able to meet their loan repayment commitments they won’t encounter any problems, though should they find themselves unable to meet their repayment commitments they could find themselves in hot water. Therefore seniors need to make sure that they can afford to make repayments comfortably before applying, and if necessary, discuss their situation with someone who has a good understanding of the process involved. 

2. Shop around

As was mentioned earlier, it is imperative that seniors shop around for a competitive provider of payday loans because some providers are much more competitive than others, so seniors stand to pay back substantially more if they’re not selective regarding the payday loan providers they apply for loans to. There’s more to a competitive loan than just the APR, though that is inherently important, so also take note of the fine print and terms and conditions of the loan, and also check online for negative reports about a provider before applying since providers that attract negative publicity should naturally be avoided. 

3. Source a competitive APR

The APR (Annual Percentage Rate) tells borrowers the cost of a short term unsecured loan with regard to how much they need make in repayments, though as discussed above, seniors still need to take into account other factors when applying for a loan. If they have a good credit rating this could help them to procure a more competitive interest rate, though they must also bear in mind that if they encounter problems making repayments this will affect their credit rating adversely and may make borrowing in the future problematic. 

4. Check the small print

Failing to check the small print is where many seniors experience problems after successfully applying for payday loans, though it shouldn’t because good loan providers make available all the information seniors require when applying for payday loans online. Seniors need to familiarise themselves with, amongst other considerations, the implications of non-payment to their credit provider and the disclosure of fees, including the APR (interest rate). 

5. Don’t apply for more than one loan

Seniors also need to bear in mind that applying for more than one short term loan at a time can also prove problematic, and that they should never apply for another unsecured loan in order to meet their outstanding loan commitments. Too many people, and not only senior citizens, have landed themselves in hot water by applying for a second loan to repay the first, so avoid applying for another payday loan until the first has been repaid.

Provided that seniors take these five tips into account, they’ll find that payday loans are a competitive means of procuring quick cash when needed.

Beware of Payday Loan Firms

Payday Loans Neon Sign (Photo credit: rinkjustice)

In this current financial climate, our wages barely cover the cost of our living expenses. For this reason, thousands of us now turn to payday loan firms each and every week. If managed properly, payday loans can be useful over a short period of time, particularly if you have a one off expense towards the end of the month that you are able to pay back immediately the week after. 

Should I Get a Payday Loan?

If you are drowning in a sea of debt, you may think that a Payday loan is the answer to your prayers. However, problems commonly occur with these loans, and for that reason, we must be very wary of them. For example, large loan amounts that are taken out some way before the repayment date carry a very high rate of interest. If you take these out and incur another cost during the next month and you are unable to pay off your loan as a result then you are forced to take out another loan to cover the interest rates of the one you had taken out previously. From here, the process becomes cyclical and you can soon spiral into large volumes of debt that can become impossible to pay. From here, these companies immediately consider repossession of your assets under the terms of your contract! Due to this, it is vitally important that you check the fine print details of your contract so that you know the details of your repayment agreement. 

Payday Loans-What Could Go Wrong?

If you dive in head first without fully understanding the consequences, you can wind up in serious financial difficulties, and a zero bank balance can seem a world away. We are currently seeing an increasing number of people become unable to pay their loans, and as has been mentioned previously, the consequences are dire. Due to this, the government has stepped in to try and control the loans offered by these companies.

In stepping in, the government is aiming to help those who are vulnerable to the lure of these companies and they are trying to ensure that loans are only provided to those who can repay them. 

I Got a Payday Loan-Now What?

Despite all of the work that the Government are doing, many people are still left with the financial burden of the loans they have already acquired. If you are one of these people, consolidate your loans in order to avoid excessive repayment fees.

As has been mentioned, getting a payday loan is not an issue if it is a short term payment to help with an additional cost. But, make sure you can afford it and always check the fine print before you take one out. Whatever you do, taking action is the best way to dig your way out of debt. Don’t bury your head in the sand, talk to a debt specialist today.