What Suze Orman Says About Payday Loans

On her website, Suze Orman’s thoughts about payday loans are clearly expressed. Understanding that most people find this option a lifesaver when they are in dire straits, as part of her Get Out of Debt Special web section, Suze Orman admits that there are times when payday loans make good sense. However, she also stresses the importance of repaying payday loans and, especially, paying down loans with high interest rates. She even encourages those who are able to utilize funds from a 401k account to do pay loans down, when necessary.

Debt Should Always Be Handled Responsibly

While payday loans can be a timely help when a person needs it most, there are a few things that should be analyzed when a person finds themselves considering this option. To begin with, how is one’s current income being spent? Experts like Suze Orman and others all agree that most people are in debt as a result of poor spending habits, relying too heavily on credit and as a result of mismanaging their income. Payday loans exist in order to help a person get out of debt. However, one’s debt can be increased and their credit damaged if payday loans are not responsibly handled. Before taking the lifeline offered by a loan until payday, one needs to closely scrutinize why their income is not adequately covering their expenses. And, where necessary, make adjustments so that regular income is sufficient.

More of Suze Orman’s Advice on Payday Loans

Suze Orman’s advice on payday loans also includes comparing the option of taking a cash advance on a credit card in lieu of a payday loan when possible. Orman’s recommendation is based on scenarios where the interest rate on payday loans being offered may be higher than what a person can comfortably repay. In terms of repayment, a person in debt should always choose the option that is the most comfortable for them. However, for those who cannot access a cash advancement on a credit card, payday loans might be the best option in order to meet one’s financial obligations.

Financial Freedom is Within Reach

Besides offering words of wisdom on payday loans, Suze Orman’s strategies for getting out of debt should be studied closely, as should the advice of other financial experts. Far too many individuals live stressful lives that are consumed with debt-related worries. However, information and educational resources that support better financial management abound in today’s marketplace. Those who find themselves relying more and more on the assistance of payday loans should educate themselves on debt reduction, personal finance and credit repair, when necessary.

Cash Advances Relieve Debt, Not Responsibility

Payday loans are understandably a very helpful alternative for those in serious need for fast, hassle-free financial relief. Many cash advance companies lend money without requiring a personal credit check. In many cases, all that is needed is proof of employment via recent pay stubs in order to obtain a personal loan. As Suze Orman’s books and appearances always highlight, however, being educated on handling one’s own finances is crucial. Payday loans offer relief, but only when they are obtained and repaid as responsibly as all other debts.

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Poor Debt Management Can Affect Generations

Most who struggle with personal finance, debt and credit issues do so because they never learned how to properly budget money. It is likely that these same people have more than one parent, siblings and other close relatives who also have personal finance debt issues. Most never learned to differentiate between needs and wants or are not very disciplined in spending accordingly. Left unchecked, such behavior has caused individuals to fall deeply into debt. Just as in situations of physical abuse and substance abuse, the dysfunctional handling of debt and credit is often passed down to future generations. Poor financial decision making, however, is much easier to rectify than the aforementioned dysfunctions.

Everyone Has Control Over Their Own Financial Future

In looking at personal finance, debt and credit, it is important to understand that an individual has ultimate control over their destiny in any of these arenas. While many feel as though their spending is out of control, the exact opposite is true. Even if there are psychological reasons as to why a person’s personal finance, debt and credit are spiraling out of control, as is the case with shopaholics or excessive gamblers, the truth is that, with help, it is still possible to maintain control over one’s personal portfolio. Simply, a person must recognize that they have a problem, that this problem is a threat to their future and that correcting the problem is fully within their control.

Debt Education is the Answer

Once a problem is realized, a person can then begin to take steps to repair their personal finance debt by becoming educated on financial topics. More than ever before, access to financial education topics are readily available to everyone. From personal finance budget software, to local community classes, to library books written by respected authors, a full financial education is within everyone’s grasp and most resources are free of charge. Keeping this in mind, a great place to start one’s financial education is with the basics of understanding how to create a personal finance debt budget and to understand how credit works. This can be learned by combing the Internet and reading various articles written on the subject or books can be checked out from the library to gain a basic understanding.

Low-Cost Debt Counseling is Also Available

Also, several non-profit organizations offer low-cost debt counseling services. Contacting one’s local Chamber of Commerce or related public agency can help locate such services. In doing so, a debt counselor can help with creating a budget, consolidating outstanding bills and offer further resources helpful to one who is determined to regain control over their personal finance debt.

No More Excuses

No matter how a person learned to mismanage personal finance, debt or credit, there is no excuse for this type of behavior to continue. Nor is there any reason for such economic woes to be passed on to future generations. Instead, a person who is truly interested in correcting bad habits and living a stress-free financial life, will take this advice to heart and begin, immediately, to learn all there is to learn about handling their finances more responsibly.

Success Key Number One

Surround yourself with successful people.

Accept that financial freedom is possible. Many cannot imagine going through debt repair, being debt free or possessing the freedom to design one’s own lifestyle by having access to a healthy cash flow. Therefore, the first step in achieving financial freedom involves believing that such a thing exists.

Success Key Number Two

Accept that financial freedom is attainable for everyone. Billionaires are ordinary human beings, and if they can achieve financial independence, this means that other ordinary human beings can, too. Yet, far too often, people are convinced that financial freedom is an ideal reserved for the enjoyment of select individuals. It is counterproductive for anyone who longs for financial freedom to believe that it is attainable by an elite few, but not for everyone.

Success Key Number Three

Provide a needed service or create a product that will be helpful to others. Know the difference between the things that people want and the things or services they actually need. If someone else is already filling these needs, determine ways in which those services or products can be improved upon. The person that is able to offer these at the best price is the one who will achieve financial freedom faster and sustain that freedom much longer than most others.

Success Key Number Four

An education is key. Whether an education is formally attained or a person is self-educated, one of the most important keys to financial freedom involves moving beyond knowing the basics of one’s niche service or product. This success key to financial freedom actually requires going beyond the fundamentals in order to field valid questions or concerns and address them using superior knowledge. Doing so makes presentations more productive and helps to pave a path to financial freedom.

Success Key Number Five

Routinely exceed expectations. When asked to do A, B or C, make a habit of going beyond these measures to provide D, E and F. In other words, go an extra mile or two for customers. Doing so helps in standing out against competition, increases reputation and attracts greater public loyalty. Each of these translates into higher revenues, which contributes to financial freedom.

Success Key Number Six

Become an expert. No matter how many professionals exist within a niche, few will ever stand out as true experts. Professionals know how to do a job, but experts strive to be at the top of their game. This is true when it comes to being the most educated within their niche, earning the trust of other professionals and endeavoring to inspire other individuals along the way.

Experts are widely recognized by their peers as those who work hard to stay a step ahead of the rest. They are the best of the best. This is not because they are competitive egomaniacs, but because they genuinely believe that what they have to offer is helpful and necessary. It is no wonder that those who experience the financial freedom that others dream of are also the top experts within their selected professions.

Success Key Number Seven

Destroy distractions. During working hours, do not allow anything short of a life and death emergency distract from projects that must be completed. Also, during personal hours, minimize time spent with mindless activities, such as endless hours of television and activities that have no real purpose. Instead, spend this time on productive activities that contribute to good health, build mental stamina and focus on mind/body renewal efforts. Avoiding useless distractions means avoiding things that drain energy and take one’s mind off of the target of financial freedom.

Success Key Number Eight

Create an inner circle of positive, focused individuals who also seek financial freedom. There’s an old adage, which explains that people are only as successful as their five closest friends. Another says that, “birds of a feather flock together.” The wisdom in both of these thoughts imply that one’s inner circle will directly impact their success. Therefore, make an effort to befriend those who have made a positive effort to adopt these wisdom keys to financial freedom and who may have a few extra to share along the way.

Success Key Number Nine

Reach out to a mentor. Target one or two experts who are willing to sacrifice a few minutes by phone, email or face-to-face at regular intervals. The mentor should be approached with the understanding that you won’t require a lot of her or his time. Instead, even if only a few minutes can be spared, the time will be helpful in reporting goals, progress and identifying areas that need to be improved. While it can be frightening to think of approaching someone to request a mentor, it should be noted that most people are flattered to be asked to share their wisdom and eager to contribute to someone’s life in such a way.