Payday Loans looking better every day

This story from the L.A. Times shows that more middle-class citizens are using payday loans to help them through tough times. One woman took out a payday loan for car repairs. Smart lady. About seven years ago, I put my car repairs on a credit card. It’s still not paid off.

That one-time fee for a payday loan is sure looking a lot better than the years of interest I’m still paying on my credit card. The uptick in middle class people using payday loans just shows that more people are aware of their options. Short-term loans should always be considered as an alternative to long-term debt.

Considering your financial options seems to be the trend for 2009 New Year’s resolutions. This video at CNN.com shows that a lot of people are making financial  resolutions, and I’ve come up with a few of my own.

Resolution No. 1: No credit cards

If you are going to join me in this resolution, grab a pair of scissors.  I am not kidding. You might think that you need those little plastic squares of figurative money, but you don’t. Cut them up. Now. There are plenty of alternatives in financial emergencies that won’t cost you 18 percent interest.

If I could go back in time and never have a credit card, I’d do it. If you’re a young adult starting life on your own, heed this advice: Do not fill out that credit card application. You will regret it. When you’re staring down your 27th birthday and still paying for jeans you bought when you were 18, you are going to kick yourself.

Resolution No. 2: Say goodbye to material girl

I have always made excuses for spending $80 on jeans. “I’m going to wear them ALL THE TIME,” I said. Well, I can wear a $20 pair of jeans all the time, too. More people nowadays are saying goodbye to brand names and designer labels. You can do it, too.

Sure, finding less expensive alternative can be time-consuming and inconvenient. But if you know that going into it, it’ll make life easier. That time you spend watching sit-coms can be spent hunting for bargains instead. If it helps you avoid racking up bad debt, it’s well worth your time. Remember, payday loans are for emergencies and should be used when they can save you money. Don’t spend it on a pair of shoes.

Resolution No. 3: Keep resolutions

This blog is full of simple tips that will help you become debt-free. Know how much you owe. Make a plan. Most importantly, stick to that plan.

This study shows that women are more likely to make New Year’s resolutions, but less likely to keep them.  And the majority of people, women and men, do not keep their New Year’s resolutions. Well, 2009 is the year to turn this around. You can do it!

Resolution No. 4: No credit cards

I know, I know, I said this already. But it’s important! Know your financial options, like payday loans, and don’t end up with bad debt that never seems to go away.