How to stay away from bad credit payday loans

Living Paycheck to Paycheck

Sometimes life can knock you down financially over and over again. Your oven stops working, then your dryer, and your hot water heater right before you get a flat tire and break your toe, all in a two-week period. (Or was that just my last month?)

When hard times hit like this, it can be overwhelming- even more so if your savings account is empty and you do not get paid for two more weeks. What happened to yesterday's check? The bills ate it up by the time it hit your account.

Now you are in a rut and do not know what to do. It is desperate times like these that lead people to drastic measure like payday loans. With bad credit and low income, what other options do you have? First, let's think about what payday loans can do to someone with bad credit.

Bad Credit Payday Loans

It is a good idea to stay avoid getting a payday loan bad credit or good credit. However, those with bad credit should try to avoid them at all costs. They tend to have higher interest rates making the amount you owe larger than someone with good credit.

If you are already in a financial bind (and let's face it, if you are considering a payday loan, you are), a high-interest payday loan is not going to help. Taking it one step farther, for the millions of people living paycheck to paycheck, paying off debt is nearly impossible. So goes the trap of payday loans. You take one out the first time, pay it and have to take it right back out the same day.

How to Stay Away from Bad Credit Payday Loans

Instead of thinking that your only option is to get fast payday loans, let's talk about how you can avoid them.

The most obvious way to avoid bad credit payday loans is to not need them in the first place.

This may sound easier said than done, but it comes down to setting your budget and increasing your income. The following are some ways to do this:

●       Sit down and list every single thing you pay for and buy every month. Look at it objectively. Is there somewhere you can cut down, even for a time?

●       Put pride to the side. Be willing to accept any form of help you qualify for and do not be ashamed of coupons.

●       Look around your house, yard, and shed. Often, people can find lots of things to sell for some extra cash. You might have a yard sale, make a post in a local bulletin, set up at a local market to sell used items, or take metal to a scrap yard.

●       Growing a vegetable garden can not only cut down on your food costs, but can also give you products to sell at your local farmers' market.

●       Get another job or move to a cheaper location.

Those are just a few ways you might cut your costs and add to your savings so you can avoid bad credit payday loans. Understand that any changes you make do not have to last forever. You can always change your lifestyle when you are on your feet. For instance, if you move to a smaller and cheaper house that you cannot stand, remember that you can move once you are in better shape. Use the dislike of that place to propel you forward in saving more. With some thought and creativity, you just might be able to find a way out of debt completely.

If you absolutely must borrow money, try these ideas first:

●       Try to borrow from your local credit union. They are usually able to approve more people than other financial institutions.

●       Try borrowing from a friend or family member that will not charge interest.

●       If you have a 401K, IRA, or mutual fund, borrow from those instead.

●       If all else fails, shop for your loan through an intermediary such as Loanry that links you with a lender that's right for you.

Conclusion

Payday loans are not the best or smartest option for anyone. Avoiding them is one of the best things a person can do. By making some changes in lifestyle and budgets, most people can stay away from bad credit payday loans and improve their financial state.