pay day loans and credit

Pay day loans are a great idea, that is for the people loaning the money. For you, the consumer, it borders on robbery. The service charges are excessive. A pay day loan for the period of two weeks could cost you up to $35 for every 100 dollars that you borrow. When you sign up for a pay day loan make sure you understand the agreement. If you can avoid pay day loans alltogether.

The cost of payday loans

 Pay day loans availible from check cashing places are one way to get by in an emergency but the fees they charge will quickly make you go broke.  The same goes for credit cards.  It is nice to be able to buy what you cannot afford, but with the interest you could end up paying twice as much.  A rule you should follow is if you cannot afford to pay it off when the bill comes in then do not buy it.  Very few of us actually follow this rule.  Then we end up making min. payments and pay more than we should.  If you cannot afford what you are buying then at least keep your debt under control.  If you have more than one credit card get rid of them all except for one (if you have too).  Try to make payments larger than your min. payment or you will end up paying interest on top of your interest - it can end up being a vicious circle of debt and if you have alot of it you may never get out of it. 

Emergency Action

If your debt is out of control, and you need help then try to Consolidate your debts.  Phone your credit card companies and ask them if they will cancel your interest or arrange for a plan to pay your debt off.   You may be able to find companies that will buy your debt and then you will have to pay them back, but at a lower interest.

Be Smart

The smartest thing you can do is not get into trouble in the first place.  Pay cash, or pay off your credit card every month.   If  you find you are falling behind be pro-active and cut your card up before somebody else does.  Once you are back on your feet you can always call your credit card company and ask them to send you a new card.