This information is provided for educational purposes only and does not constitute legal advice.
Cope With a Cash-flow Gap Without Borrowing
Get Out of the Payday Loan Debt Trap
File a Complaint or Get Help
Safeguard Your Bank Account
Many American families struggle every month, working hard to make ends meet. Consumers who run short of money before payday probably cannot manage to borrow from a payday loan store. High cost loans that must be repaid on the next payday to keep the check from bouncing usually don't solve a financial crisis -- they only make financial worries worse. Coping with pressing financial problems without adding more debt takes effort and may require creativity but can save you a lot of money, worry, and stress. The FTC recently came out urging consumers to consider alternative options to payday loans. Here are some tips that CFA offers:
Avoid Needing Quick Cash Payday Loans
- Build a $500 emergency fund. Although money may be tight, we all need an emergency savings nest egg for unexpected bills or ups and downs of income and expenses. Start by having
a small goal, such as $10 per paycheck. If your check is directly deposited into your bank account, ask your employer to direct deposit a portion to a savings account. To learn how you can become a saver, visit www.AmericaSaves.org .
- Developing a household budget is a way to keep track of income and expenses and to determine ways to save. Take stock of your income and expenses. Work out a realistic spending and savings plan with your family. Set aside some money every payday for big bills that come due once or twice a year, such as insurance. Plan ahead for budget-busters, such as holiday gifts, birthdays and vacations.
Get Credit Counseling Help
When done well, credit counseling can be a useful tool for consumers in financial distress or to help families plan a budget. Traditionally, credit counseling agencies have offered a range of services, including financial and budget counseling and community education, as well as debt consolidation plans, known as debt management plans or DMPs. However, consumers should be aware that there have been serious problems in the credit counseling industry, including improper advice, deceptive practices and excessive fees.
Category: Payday loans