In a perfect world, people would always be able to live within their means, and have some money set aside in case of emergencies. The reality tends to be different with many living hand-to-mouth from one month’s end to the next. Even the idea of being able to save brings a sad smile. There’s just no slack. In such situations, the ability to borrow money gives people a buffer. Instead of money always being in short supply, you can budget without the same pressure. Except that, with the credit crunch making life even more difficult for borrowers, the odds are you’re denied access to bank loans - usually the cheapest form of finance. With the only option a payday loan, you need to move with caution. The interest rates are really high. If you can avoid borrowing, you’re saving major dollars. So there are two ends of the street. The one starts with your pay or salary. Is there any way you can add a few extra hours of overtime, or can you qualify for a bonus? You should also remember that some employers will make an advance against pay. This is the same as a payday loan except you’re not hit by the fees and charges. If your current employer cannot help you out, can you earn a few extra dollars with part-time work? If there’s a pressing need, do you have anything you could sell in a yard sale. Even $100 from clearing out your garage might help avoid a loan. If every possible source of extra money is tapped out, the alternative is cutting your outgoings. It’s hard and sad to have to look seriously at economising, but when you consider the alternative of high interest payday loans, a little pain now is better than forced pain in a few months time when the interest rates really bite on the loans. When every option has been tried and you’re forced to look at a loan, take the smallest possible amount at the lowest rate you can find. Never treat payday loans casually. The fees and charges can sneak up on you when you’re not looking and bite you hard.

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