How to build savings and move away from payday loans
Today’s world and the payday loan
In today’s world, payday loans have become a reliable funding option. Many people find themselves at a shortfall when it comes to paying their monthly bills. Since the recession, credit cards have proven to be not as reliable as once thought. Credit lenders closed their doors sharply when they faced huge losses due to the overwhelming number of defaulting accounts. Interest rates skyrocketed, credit limits were slashed and lending companies altered their rules to make it difficult for even their best customers to use credit like they used to. The credit market is still leveling itself off and only time will tell what the future holds. In the mean time, consumers have gotten creative with how to pay their bills.
One option many people have used successfully is the payday loan option. These loans are built for people in need of quick cash. Normally the requirements include having a job, being over 18 and having direct deposit. The loans are helpful for those who qualify, and they can save applicants from over-limit fees and late fees that a late payment can trigger.
Saving money is becoming the new trend
Despite the popularity of payday loans though, there are some people who are turning to good old-fashioned saving as a means of facing hefty bills. For anyone looking to bring in extra money in savings, it isn’t as difficult as it sounds. Here are some ways people are using to bring in part-time revenue:
- EBay. Many people make a good second income by selling things online. The good news is that EBay has been around long enough to create a great customer service team and a product listing procedure that is simple. Some people specialize in hunting for finds at thrift stores. They then double the price, factor in shipping and sell the item online for a good profit.
- Caterer. Catering is one of those jobs that anyone can do. For people with a few years of hosting or waitressing under their belt, it can be a lucrative second job. Many people are putting ads online on Craig’s List citing their availability. In particular during the popular wedding season, workers can easily make enough to equal, and even go beyond, the money they could get from payday loans.
- Maid. Office buildings and homes all need someone to clean them. After hours or weekends are normally when the shifts start, so they are perfect for people with full-time day jobs. One online job seeker wrote a review of her experience as a maid and said, “I do this extra job two nights a week and it earns me an extra $70 a week…I normally have an extra $300 or so, by the end of the month.”
- Online expert. Some people have found their second job possibility by using their knowledge of the internet. People who know how to update web pages, maintain websites or code have an advantage over others. Normally these services cost companies big bucks when they hire professionals. Finding a freelancer or a part-time worker can save them thousands. One recent poster on Craig’s List wrote, “I used to maintain a company website for about $13 an hour as a part-time thing on the side. It was convenient because I could do it from home in the evening or the weekends.”
The changing economy
Though analysts are professing that improvements in the economy will be visible in mid-2010, they don’t truly know to what degree those changes will affect people. People have relied on payday loans since the recession began, but are now looking to ways of creating added income. With some creativity and research on what their skills are, everyone can find a way to bring in more income.