As one of the oldest payday loan companies in the UK, Paydayloan.co.uk is no stranger to seeing people in a short term financial bind. It has been estimated that UK consumers owe a total of more than £1 trillion through loans, credit cards and mortgages. In today's financial market, it's no wonder people are turning to payday loans and that's why we are here to help.
We have seen a lot of people in various financial binds over the years. However, payday loans are not a solution for people who are in a situation of uncontrollable debt. Here are some possible scenarios...
- If you have a car, TV and sofa on higher purchase in addition to 3 maxed out credit cards and are also behind on your mortgage payment - then we are NOT for you!
- If you think that you may not be able to repay your payday loan on time and in full - then we are NOT for you!
- If you are unemployed, overdrawn and/or otherwise swimming in an ocean of debt collectors - then we are NOT for you!
We understand that finding a budget that works for you and then sticking to it, can be one of the most difficult things in the world. So, we've done the research for you and selected some of the top ways that you can try and avoid debt through saving and budgeting correctly. If you are starting to feel a little overwhelmed by your financial situation the below might be a good starting point for you.
- Set up a reasonable budget. You can do this by taking all of your income and calculating your monthly costs including; gas, rent, food shopping, utilities, phone, cable or internet and whatever other expenses that you need to pay on a monthly basis. Once you've calculated all of your monthly expenses (be sure to round up - not down), you subtract that from your salary. If you have money left over after taking out all of your monthly expenses then stick to those numbers that you wrote down! Take your left over money and put it into a savings account or use it to start paying off any overdue debts so the fees don't accumulate.
- If you've calculated your wage and your monthly expenses and you see that your costs in a month exceed your wage in a month - then it's definitely time to start thinking about what you can change. Are you spending too much money eating out? Could you cut down on taxis and walk or take public transportation? Could you move to a less expensive flat? Could you just use one light at a time and shut off that light when you leave the room? Could you take in a lodger?
- Once you have your budget for the month - divide up your remaining money into 4 weeks. At the start of each week, you take your spending cash and ONLY use that money. By doing this, you will be able to better avoid any temptations you might have during the week - like buying a new pair of shoes or going out more than once for drinks with friends. If you know that you only have 100 pounds of walking around money for a week - chances are, you will be less willing to spend 30 of that on a new outfit that you probably don't really need.
- Have a clear goal in mind of what you're looking to accomplish with your budgeting/saving. Do you want to save up for a nice holiday in some sunny destination far away from the grey clouds of the UK? Maybe you just need to finally pay back that friend or family member that you've been putting off forever? Or maybe you'd just like to be a little more frugal and have a rainy day fund should anything happen. Whatever your reason for putting the money on the side, you need to keep reminding yourself of what the end goal is.
- Stay away from credit cards and stick to cash! It's much easier to overspend on a credit card than it is with cash. If you're going food shopping with cash, you will be sure to look at the price of each and every item you put in your cart because you know that you can't go over. However, if you go food shopping with a credit card, you will pay less attention to item prices because you know that even if you go over your designated food budget for the week, you can just swipe your card and everything will go through. It's a slippery slope that's very easy to get carried away with.
- Don't spend all of your free time on Facebook, Twitter or YouTube! Maybe you can find a temporary part time job working as a cashier in your local supermarket, as a waitress in your favorite restaurant (which also means that you get your favorite food for free) or maybe even just putting up an ad in your flat's lift offering your services as a dog walker. There are tons of ways to earn a little extra money on the side if all your free time isn't taken up by sitting in front of the computer. You might want to check out http://www.moneymagpie.com for some excellent suggestions on ways to save and make money!
It's important to keep in mind that payday loans should only be used as a short-term solution to an immediate cash-flow problem. Payday loans should not be used if you are already in debt or if you find yourself continually short of money even just several days after payday. See our Commitment to Responsible Lending for a closer look at the measure we take to making sure that all our customers are fully informed about payday loans and everything they entail.
Well, that's pretty much all the important bits and we hope that you were able to find some help. If you feel like these tips aren't enough to help you and you need something else, please visit either www.nationaldebtline.co.uk or www.citizensadvice.org.uk. They will be able to help you get started on the path to healthy finances.