Here is the long-awaited Simple Payday guide to saving your wonga (money).
Please be advised that this is just a guide and any financial decisions should not be made without first consulting your spouse and/or a bank manager.
- This rule should never be under-estimated, be smart. Common-sense in this world can go a long way, as the old saying goes there is nothing easier parted than a fool and his money. Get rich-quick schemes or just that ‘schemes’, usually schemes for the other party involved to get rich with your hard earned dough. Don’t be fooled into giving anyone your cash or card details.
- Don’t gamble, although this might seem on the surface a good idea to double your cash fast, if you can’t afford to lose the money, you shouldn’t even be thinking about this one. The odds with any type of gambling are always stacked against you, so even before you start you’re behind. Save your money and play a video game, although if you do, put it all on red because this colour will be appearing on your bank statements if you pursue gambling in any guise.
- Buy supermarket own brands and look out for reduced items. Manufacturing is not such a dis-jointed economy that all food stuffs are produced that differently. Most of the supermarket own brands are produced in the same factory or by the leading manufacturers. Sometimes the leading brand can be as much as twice the price, although they may taste a little different most of the effect is psychological, you know you’ve paid twice the price so it should taste better, right? Well maybe not but you’ve got no money, so count your blessings you’re even eating and not on the streets.
- Make sure you have no holes in your pockets, this can be the number 1 cause of losing money, followed closely by forgetfulness.
- Take your supermarket own brand food to work and have it for lunch. Your work colleagues may look at you a little strange as you cower in the corner with a can of basics beans, however you can have the last laugh knowing you’ve saved over £2 on not buying that Boots submarine roll, that’s 21 cans of basics beans with a penny to spare.
Payday loans Vs Bank charges – The Showdown
In this modern day and age it is incredible banking customers are still charged for going overdrawn, bearing in mind that these are the very customers that willingly and obligingly keep the banks running, for them to then charge them above and beyond what is a reasonable amount for costs that may be incurred, I find ridiculous.
Lets put this in the context it deserves, a customer of Lloyd’s TSB is charged a flat fee of £15 for being overdrawn and then a charge of £6 for every day that they are overdrawn. Now apart from being an obvious deterrent there is little substance to this charge, the bank cannot possibly justify such charges for a figure that most times does not even reach two numbers.
Another fact of this over inflated policy, that is especially frustrating, is that the bank, whichever it is, should not allow the customer to go overdrawn, and most times does not. So why is this not the rule for all situations?
As most of you will be aware this is due to certain shop card machines having some sort of delay, that means the transaction does not automatically go through then but a little later or in some cases a long time later. Is there not something that can be done about this? After all not all of us have the necessary grey matter to keep track of every time we use our pin-chip, and tend to trust the digits flashing in front of our faces at the cash robot.
Having now exceeded the allotted limit, what options do banking customers have?
If you do some quick sums, having a Lloyd’s account and going overdrawn even for a day is hitting your wallet hard, never mind a week. A good option if you can’t borrow money from friends and family is a payday loan, otherwise known as a cash advance.
These loans are designed for this exact sort of situation. The application is done online, takes 5 minutes, and if approved the funds are deposited in your account on the same day. The same day funding aspect is especially convenient as you don’t have to trudge down to your chosen bank and waste more of your time dealing with the matter.
The charges levied for such a service are not cheap, however they pale in comparison to bank charges. The loan is repaid after a month, which is usually on your next payday, however if you are paid weekly you still have the option to have the loan for a month, your choice.
These loans are also called bridging loans which sums them up perfectly. If we look at the charges for a week of being overdrawn it’s going to hit at least £50, now compare that to a payday loan at an interest rate of £25 for every £100 borrowed, as Bill Gates would say it’s a no-brainer. Also you are actually paying for a service rather than being stung for nothing more than a ridiculous charge.
So as long as banks continue to act in this unscrupulous fashion and we continue to need the bank we really have no choice, we have to put up with it, however with an instant loan we can now lessen the charges, although not ideal it is cheaper.
Often their are people on the Internet, in various forums or discussion boards that reply to questions about payday loans negatively, why is this? Why do some people have such a negative viewpoint about online payday loans?
Payday loans are a fairly new type of loan, made big in America several years ago they are now becoming more popular here in the United Kingdom. As with any product or service that is available to the masses, some people are going to either love or loathe them.
Granted cash loans do carry a higher than normal interest rate, however this is to cover the high risk in lending to people that often have a very poor credit rating. These loans are often a source of credit that borrowers turn to when no other lender will touch them with a proverbial barge pole. Borrowers realise this and so is the case that they are as popular as they are.
Often is the case, people who have no empathy or relation to the situations’ of poor working-class people feel a moral superiority and that it is their right or obligation to pass on their vast knowledge.
The terms for such loans are extremely transparent in how they work, people extending credit in this way know exactly what is expected and exactly when it is expected. The service is offering customers with little chance of gaining credit a service that will allow them to, and get the cash they need.
All lenders are subject to Consumer Credit License guidelines and responsible lending is adhered to at all times
This being the case and online loans obviously filling a need in the market it is up to the consumer taking the loan out to judge it either negatively or positively for their situation.