day 76 – credit cards (Photo credit: JudeanPeoplesFront)
Making ends meet, paying the bills on time, as well as taking care of all the monthly bills has become an art form in this precarious economy. Never has there been a time when it was so important to watch every dime coming in, as well as watching every dime going out. Pinching pennies is no longer something to be laughed at, but a skill everyone needs to learn.
- Max out the credit cards. With credit lines being shaved to bare minimum, and inability to qualify for lines of credit, it is becoming more and more important that we explore different ways to make the budget. Credit card debt can only pile up so far before the credit limits are reached, and they can no longer be used. It can also take years to pay that money back, adding to the stress of the already burdened budget.
- Borrowing money from friends and family is not usually the best way to stay above board. It can cause animosity that may not be able to be repaired. Besides, most everyone is in the same boat, and the chances are that friends and family don’t have the extra cash you may need.
- Refinancing the mortgage, or taking a home equity loan. A refinance might be a good idea, however this is something that should be saved for a time when a lot of cash is needed. There is a lot of paper work, credit checks, and possibly money due up front that make this financial solution a last ditch effort.
- Bank loan. Again, borrowing money is a solution, however a bank loan can take some time for approval and such approval is getting harder and harder to accomplish, with banks increasing their minimal credit ratings all the time, to protect themselves.
One possible solution is a payday loan. This is a short-term loan, perhaps until the next payday or two, that can make sure that you meet those deadlines, and avoid those late fees. Payday loans in Canada are also a way to receive the necessary funds quicker than a long drawn out bank loan. Keeping up with payments, paying on time and making sure that the loan is paid off when it is due can also help keep you on track.
When exploring new financial solutions, take all factors into consideration. Look into all options. Make sure that the solution you choose is one that will not only take of the immediate problem and helping you out that way, but also sets you up for a long-term goal of financial freedom and a credit-worthy status.