Jumat, 31 Agustus 2012

What Constitutes an Emergency When Considering a Payday Loan?

Payday loans are often advertised as a means of recovering from a financial emergency, and when used in this way they can indeed be a life saver. However, this leads one to ask what, exactly, constitutes a financial emergency. This is an important question to ask, as payday loans are expensive and can potentially put you in even more dire financial straits if not used wisely.

Thus, they should be used only when they must be used, with the aforementioned 'must' indicating a legitimate emergency. What a true emergency is may be relative to the situation at hand, but there are some characteristics that it should possess in order to count as such.

There are several forms that an emergency of this nature can take. The first is a situation wherein someone's health is at risk. If you or a loved one needs money immediately in order to cover medical costs, then you are faced with a valid reason for taking out a loan. Such a case is rarely applicable to humans, as hospitals will bill you after a medical emergency and usually offer a repayment plan for those who do not have insurance and cannot afford to pay the total costs in one lump sum.

However, for prescriptions and other such expenses, you will need to pay upfront, and it is in these situations that a payday loan will come in handy. Additionally, animal lovers may also have to withdraw a loan if their pet suffers an unexpected health issue, as veterinarians do not have the same 'No patient turned away' policy that hospitals do.

Another situation that will count as an emergency for the purposes of payday loans will be those in which one of your basic needs is affected. Such cases would include a potential eviction due to unpaid rent, a lack of groceries, or a possible loss of electricity or gas because of a late bill. These circumstances are even more urgent if they affect not only yourself but a loved one as well, such as kids or a spouse. In such predicaments, a payday loan is a warranted and welcomed solution to ensure that you and those who depend on you will keep their basic needs of food and shelter.

A final condition that constitutes a financial emergency which may necessitate a loan is when a situation arises that may hinder your ability to procure further funds in the future. For example, if you rely on you vehicle to get you to and from work in order to make money, then unexpected car troubles or a late car bill would count as an emergency for which a loan is more than warranted. This goes the same for anything that you use to earn a paycheck. If you use a cell phone, or work online and use a computer and the internet, a situation affecting the viability of said objects would constitute an emergency for which you would be justified in taking out a loan.

There are a variety of situations where a payday loan can help you get through tough times. By keeping in mind that such services should only be used for emergencies and questioning what counts as an emergency, you can ensure responsible borrowing practices, thus keeping you financially on track and out of debt.

Senin, 13 Agustus 2012

Teach Your Children to Budget and Protect Them Against Payday Loans

The old adage "prevention is the best medicine" is certainly applicable to personal finances. Preparing finances and planning ahead can keep a person off the online payday loan lender site, saving said individual the fees and interest associated with such loans. Starting a savings account, budgeting for the proverbial rainy day, and keeping tabs on one's credit are all important methods to maintain healthy finances, allowing for more financial independence and less payday loan reliance. Cultivating healthy spending and budgeting habits is a great way to personally prepare for unexpected emergencies, but how can one similarly prepare his/her children for future financial success?

Parents want their children to be successful; no parents want to see their children struggle financially or develop a payday loan habit. Like all things worth pursuing in life, financial success requires preparation and who better to prepare youths for the financial realities of the future than parents? Starting a child early on the path of financial security will help instill financial habits and values that can persist a lifetime. It may not always be an easy task, however.

While the actual concept of money is likely foreign to a child, teaching a youngster the basics of financial transactions can provide a strong basis for future financial success. With these fun, family activities, a child can learn about financial exchanges, even before he/she can understand what a dollar is really worth.

*Play a friendly game of poker. Break a dollar into pennies, nickels, and dimes and play poker with your kids. While it is a small amount to an adult, a dime is a big deal to a small child. Playing poker with your kids teaches them a couple of important financial rules: one, it teaches children how to count money; two, it teaches children not to go all in on an 'investment' that isn't a sure thing. Both lessons are crucial to financial success.

*Help your child create a Halloween candy budget. If your child has an abundance of Halloween candy, explain that he/she gets 7 pieces per week until it runs out. Then have the child figure out how many candies he/she should eat per day. Such a lesson in budgeting is invaluable to a child's future financial success

*Match your child's earnings for purchases. As a lesson on how retirement funds or high-yield saving's account work, tell your child that you will match whatever they put in on a purchase up to a certain dollar amount. Let's say your son wants a hundred dollar skateboard; tell him you will match up to fifty dollars. In doing so, you inspire your child to work for the money he/she needs while conducting a lesson on how some retirement and savings accounts work.

*Create a joint savings account for gifts. Kids get little bits of money from all sorts of places: grandparents, garage sales, lemonade stands, allowances, etc. Encouraging your child to put a little of that money aside for gifts come the holiday season will demonstrate the importance of planning ahead and anticipating expenses.

*Encourage your child to trade in old toys and donate to charity. This lesson will teach your child to barter rather than buy, and donate to those less fortunate-lessons which will save them money and make them kinder adults.