My Personal Finance Blog

Nobody likes to have debts hanging over them. That’s why many people work hard to repay credit cards, overdrafts and payday loans as soon as possible. However, finding ways to lower spending or increase your income can be difficult, so what can you do to pay off online payday loans quickly?

First of all you will need to evaluate the benefit and possibility of doing so. Not all payday loan companies will be able to offer an early repayment option, simply because it isn’t in anybody’s best interest to do so. After all, you have to remember that payday loans are an exclusively short-term form of borrowing, so the agreed repayment date will always be within 30 days. As such, any early payment is only likely to shorten this fractionally and may end up costing more in additional admin.

One instance where this certainly isn’t the case is when you take out a payday loan which has interest applied each day in deference to the slightly more common one-off charge.

So if you were to have a £200 payday loan that was charged at 1% a day that would mean that your interest would add up to £60 after 30 days. However, if you were to opt for a company that charges a fixed rate for every loan, let’s say 25%, you would end up paying £50 for the same amount.

For the sake of this example, let’s say that you find the money needed to repay your loan after just 15 days. Suddenly the company that applies interest on a daily basis would become cheaper. After all, assuming there were no additional fees applied, this would mean that your interest was halved, which would mean that you only need to pay £30. Conversely, if you were to do the same with the second company, the charges would remain the same. So whether you pay it after 15 or 30 days, there will be no discernable difference in cost.

Therefore it’s important to evaluate all of your options before applying and then do the same again if you are looking to remove your debt partially or in its entirety before the agreed date.

In order to save the money required to repay your payday loan before the due date, you may simply need to cut back on a few non-essential purchases or even cut out certain journeys. The cost of living is increasing year on year, which means that many people have had to find ways to cut back. Whilst you may have already had to remove certain expenses from your monthly budget, there’s usually a few items that you can live without.

As previously mentioned, this might mean leaving the car in the garage when you’re heading out to the shops. With the cost of petrol reaching record highs, every journey has a clear cost. The more you drive or use public transport, the more you will inevitably end up spending. You might also want to look at removing certain treats during your weekly visit to the supermarket, or just choose cheaper, unbranded products.

All of these small savings can really mount up over the course of a month. If you can also do a few extra hours at work or cut down in other more significant areas, you can speed up the process significantly. A lot will depend on your current financial situation and personal circumstances though. Some will certainly find it much easier to save than others, purely because they have more income or areas to cut down in. However, it should be within the grasp of most to repay a payday loan early.

It all starts with a simple step – make a budget! The most important thing about improving your family finances is to get a clear picture of exactly where you stand. Once you know that, you have a clear understanding of the positive and negative aspects of your financial position you can identify clear steps to take in order to move forward, and improve your finances.

A budget is the backbone of any financial endeavour – whether you are running a business or a household. You must be clear about what financial responsibilities you have, as well as be clear about what your income sources are. The key here is to be completely open and honest with yourself – if you’re not, the whole exercise is futile.

It’s also important to identify financial goals for yourself and a clear timeline in which you want to achieve them. Examples may include going on a holiday, buying a car, paying off existing debt, or buying a house. No matter what the goal, make sure you have a set date you want to achieve it.

To speed up the achievement of your goals, take steps to increase savings, income streams (if possible) and reduce your level of debt. Your personal debt is money you give to someone else each time you have income, so obviously if you reduce those debts, you’ll improve the amount of investable (not disposable) income.

Pay off your credit cards, then cut them up to make sure you don’t run them up again. Pay extra – as much as possible – on your debts to repay them earlier. This will usually save you money because the longer you have these debts like a car or personal loan, the longer you are charged interest. The more you pay on the debt, the less interest is charged and you can pay it off quicker because you are reducing the principal amount of the loan.

If you’re like most people you will have multiple interest incurring debts. You can attack your debt using a number of strategies. Personally, I like to repay smaller amounts first, because the psychological impact of removing a debt from your list of liabilities is fantastic. Plus, the amount you used to pay on the smaller debt can then be snowballed onto other debts – reducing them quicker. Other people may like to repay any extra they have on the debt which is incurring the highest amount of interest. The bottom line is that you should do whatever suits you and your goals.

Unfortunately, the options to get a new credit card are severely limited for people with less-than-desirable credit histories. The restrictions are so stern, in fact, that many consumers with bad credit are unable to buy simple consumer goods, or are slapped with very high interest rates.

There is good news, however, and it comes in the form of ‘no bank account’ credit cards. These cards allow people with low credit ratings and no bank accounts to enjoy the purchasing power of a credit card.

‘No bank account’ credit cards are usually pre-funded, meaning the cardholder ‘reloads’ it with money in order to use it. This arrangement is perfect for people who want to control their spending and limit themselves only to what they can afford. Most individuals recovering from bankruptcy use this type of card. It not only reestablishes credit history and demonstrates financial responsibility to creditors – it also affords users the convenience of a fully-functional credit card while living within their income.

If you are thinking about getting a ‘no bank account’ credit card, do not hurry – you should first shop around for the best deals.

The best ‘no bank account’ cards offer the same benefits as a regular credit card, such as rewards programs and online access and management. The card should be accepted in millions of locations around the world, and have ATM access for easy cash withdrawals, and other such convenient features.

You should also find a credit card provider that does not ask for annual fees or transaction fees, and offers free customer support either via the telephone or online. Some companies even go so far as to provide ‘wireless alerts’ to ‘no bank account’ credit cardholders – such a service will enable you to easily keep an eye on your account via text messages (SMS). The added features will certainly help you budget your finances even more effectively.

Are you a shopping addict? Do you buy something every time you go shopping? Do you go to the mall more than normal, like every day or multiple times a week? Do you buy things you don’t need and more importantly can’t afford? Then chances are you are a shopping addict. Not only is it a bad habit but it also can jeopardize your financial life and your family life if you use credit to pay for everything. You can take some steps to break the addiction.

The first thing that you need to do is to limit the amount of money you can spend on shopping. Destroy your credit cards today so you can’t build up any more debt at astronomical interest rates. Did you know that interest rates on credit cards of 15% and up are more rule than exception. Not to mention the fees if you make a late payment. So do yourself a favor and destroy that credit card. You do not need them, people have lived without them for many decades and so can you.

If you can’t live without credit cards, try to limit them to only one credit card with a limit you are comfortable with and that you can manage. Contact your bank and ask them to lower the limit. They will try to talk you out of it as issuing credit cards and collecting the hefty interest rates is one of their primary sources of income so don’t give in!

Get a charge card where you have to pay the full amount every month. You will be less likely to overspend if you know you will have to pay it all back the next month. Consider getting a prepaid VISA or MasterCard on which you first have to deposit money before you can spend it.

Never use credit for something that depreciates in value like clothing, food, rent, vacation and even your car. That is bad debt that carries a high interest rate and negatively influences your credit score. Save your credit lines for things that really matter like buying a house, starting your own business or getting an education.

Salesmen have a tendency to make everything inexpensive by talking in terms of monthly down payments. Don’t fall for this and look at the total cost. You will notice that when you buy something on credit, the final cost will be a lot higher than the actual retail price when you count the interest rates.

When you go shopping, leave your cards at home and only take a limited amount of cash. The less you have on you, the less you can spend on things you don’t need. Also make a list of what you actually need before you go shopping and stick to the list.

Banks and their associates are now competing with one another to provide a quick and easy credit card application process. There are two common options for bank credit card applications – online format and paper copy format. Banks’ disclosure statements provide all information regarding the costs and the terms of repayment.

By entering a few simple answers and providing financial details at a safe website, you can get a response to your application within a minute. An online application is the fastest and easiest way to receive credit cards. It is also one of the safest ways, as it protects personal financial details. There are a number of card types available. You can easily choose a card that matches your needs.

Banks’ websites usually display a list of their credit card types, interest rates, special promotions and credit limits. Many of them indicate the level of credit you require. For instance, a credit card with a high limit may need good credit, but in case of a student card, past credit history is not required. Generally, a person who is 18 years of age or older can apply for a card with any U.S. bank.

Most bank applications accompany two statements: ‘pre-selected’ and ‘pre-approved.’

In the case of ‘pre-selected’ statements, a person receives credit based on the details he provides on the application and depending on a succeeding credit report. In the case of ‘pre-approved’ statement, the person is granted credit just as he fills out the application and demands. But, he would not obtain as much credit as he desires.