Monthly Archives: January 2012

Payday loans, worth it or not?

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What do you do when you have bad credit and need cash right away?

If you don’t have a credit card, there aren’t going to be many choices in this situation. You can either borrow from a friend or relative, win the lottery (unlikely) or find a payday loan lender.

For many people, a payday loan lender is the only solution. But is it worth it? Well, if you need cash and there’s no getting around it by budgeting, then it just might be.

Payday loans carry high interest rates and are not meant to be carried for the long term. In fact, they carry interest rates which can reach 1000% or more when annualized. Sound scary? It is if you don’t exercise responsibility but it doesn’t have to be. If you budget, you can keep on top of your payments and come out of the loan very quickly.

3 important considerations for managing payday loan debt

  1. Take a look at whatever you have to pay for and make sure you’re getting the best possible price. If dealing with repairs, get your price in writing to minimize any chance for surprises.

  2. Don’t borrow much more than the expense even if you can. Payday loan money is expensive. It’s not a good idea to use it for anything except absolute necessities.

  3. Try to keep your loan to a few weeks of salary. Preferably calculated after taxes. Meaning, your take home pay.

The loan will come due faster than you know it, so the next few weeks will be all about budgeting. Try to make due with as little as you possibly can and pay as much as possible in each installment. Make sure your money is going toward the principle. You may communicate with the lender to make sure.

If you’ve decided that a payday loan is definitely for you, check out the info on our preferred payday loan lender.

Credit card fraud is real – protect yourself

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Most consumer credit cards protect the cardholder in the case of fraudulent charges. If charges are not made by you, you’ll probably not be held responsible but make no mistake, it can be a real hassle to deal with.

Here are some tips to make sure your card is safe:

  1. Sign the back of the credit card

    Sounds simple enough but many people tend to leave this area blank or don’t notice when the signature has rubbed off. You may not know this but your signature is the primary form of identification when verifying your card at the store.

  2. Take extra care to keep your credit card in a safe place

    Make sure you always take your card back after making a purchase. Credit card fraud is more high tech and sophisticated than ever before. Forgetting your card for even a short while can give thieves an opportunity to make a copy. It’s possible to think you’ve gotten your card back and a replica may already exist.

  3. Always check your statement to make sure all charges are yours

    Credit card companies are great at figuring out your spending habits and identifying flags but fraudsters are always plotting their way around security systems. The sooner you find charges that aren’t yours, the better. Faster detection means protection for you, the credit card companies and helps law enforcement catch the criminals who used your card in the first place.