Consumers are using payday loans and their tax refunds to pay necessary bills. In the past, taxpayers saw their tax refunds as additional money to do something fun with. Whether it was a vacation, a new TV or a down payment on a vehicle, people used the money for unnecessary items. This year a new poll is showing that most Americans are looking forward to paying off bills and expenses with their tax money. In fact more than 54 percent of those receiving refund money intend to either pay credit card bills, utility bills or other housing-related expenses. This is up from the 35 percent who were in the same position just one year ago.

This news is no surprise to analysts who have spent months studying the economy and the recession. They predicted long ago that people’s attitudes toward spending would be conservative at best. Michael Fortman, economist for Smartmoney.com, stated, “Even with big sales and discounts, many Americans are going to be very cautious going into the future. … They have seen the recession and what it did to many families and they don’t want to get caught up in the issue later on down the road.”

Taxpayers are trying to stretch their budgets

The Obama administration wants this year’s refund money to be fueled back into the economy. Their hope is that the added money will spur the economy out of a recession quicker. However, with the loss of more than 5 million jobs since the end of 2007,this is a difficult task. Add that to research showing the people are focusing any increase in funds to necessary bills, and the result is less discretionary spending. As Fortman concluded, “It makes sense to be frugal when the economy is in such bad shape, but it hurts the economy when everyone does it.”

Taxpayers are trying to stretch their budgets, using payday loans, extreme budgeting, thrift-store shopping and bartering to meet their everyday needs. One mother from Sarasota, Florida stated, “For the past year and a half, I have been trading clothes with other mothers at my son’s school. Without that bartering, it would have been next to impossible to keep our five children clothed.” Creativity is the new way of 2009, as consumers are eager to find new ways of saving money.

Government interventions with the stimulus plan

The question remains whether the government’s intervention with the $787 billion stimulus truly served its purpose. It’s going to be difficult to say whether it did because of the unknown.

Critics maintain that the stimulus’s mixture of government spending and tax cuts benefited large businesses, but did little for immediate relief in the lives of American families. Harvey Leven, lawyer in New York, stated, “The little guy is always down. … Sure, the government extended huge packages to corporate America, but taxpayers — the ones who in the end will pay for the stimulus — are left in the cold. They have to fend for themselves suffering through unemployment, rising interest rates and lowered home values.”

Americans wonder about the future

In the end, many Americans are wondering where the post-recession life will leave them. They are being resourceful when paying bills, using payday loans and tax refund money to cover the costs. Everyone hopes, though, that their return to normalcy will be quick. Hopefully the economy will level itself out and allow people to return to normal spending.

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A little trim saves a lot of money (photo: flickr.com)

Today, many families are struggling with tight budgets. Even in better economic times, it can be difficult to find ways to save money when there’s little or none left at the end of the month. But when you take a really close look at your spending habits, there’s almost always one more way to save a little money. Small, incremental savings really do add up.  Here are a few ideas to help you trim your budget and free up some extra cash:

Food and grocery expenses

Take a look at where your food dollars really go. Make a list of how frequently you eat in a restaurant or visit the coffee shop on the way to work. Perhaps there are extra impulsive buys at the grocery store that aren’t necessary. If you are purchasing brand name items, there are usually generic brands available that can offer you the same (or nearly the same) quality.  Eating at home more often and buying generic products can save you money every week.

Gauge your utility usage carefully

Utility bills are major expenses in most household budgets. Electricity and water are necessities; however, can you usually find ways to use them more efficiently. Are you switching off the computer when you’re not using it? Are you turning off the water at appropriate times? Are you turning down the heat when you’re not home?  These and other simple things can make a big difference in the bottom line.

Check your bank statement for ATM fees

When you look closely at your bank statement, you may find fees you’ve never noticed before. If you use the ATM frequently, you may be paying several dollars for each transaction. You can avoid this unnecessary expense, by use your debit card for a purchase and asking for cash back.  It doesn’t cost anything extra to get cash back from a purchase at major grocery, drug, and hardware stores.

Cut down on bank account fees

Another thing to look for on your bank statement is fees for services you don’t use.  Some bank accounts have monthly fees for multiple transactions, and others charge you for each one that you make. Count the number of transactions that you make, and find which route is cheaper for you.  It’s easy to find banks who offer accounts with free services.  Change banks if doing so will save you money.  At some banks, you can also save a few dollars by opting for online statements rather than paper statements

Stop using credit cards

If you owe a balance on your credit card, cut the card up and throw it away. If you have any extra cash that you would normally deposit into your bank account, use it to pay down your card instead. You may be paying hundreds of dollars in interest on this debt.  Make every effort to pay it down quickly.  Once you start to make a dent in the principal balance, you’ll notice the difference in your available cash each month.

Pay your bills on time

Paying your bills when they are due will save significant amounts each month.  When money is tight, late fees and other penalties make your struggles so much worse.  Cut back on other expenditures in whatever way you can and pay your monthly bills on time.  If you’ve incurring late fees, you can save hundreds of dollars each month – literally – by make timely payments your first priority.

Add up your extra cash!

When you get serious about cutting your expenditures, you’ll notice the savings right away.  It’s surprising how quickly these little changes can make such a big difference.

If you need Extra Cash, Apply Now

A no-fax cash advance is a secure, instant online loan. You can be eligible for a loan of up to $1,500. They are convenient to use, because they can be filled out and be approved in only a few minutes. Your lender can deposit the funds needed directly into your bank account, and this can be done in as little as two hours following approval.

Bad credit does not pose a problem

Any bad credit history will not affect the application of this loan. If you have an unforeseen bill or an emergency for which you need cash, you are eligible for a simple, easy cash advance, regardless of your credit history. This is a huge advantage because regardless of one’s credit history, an emergency needs immediate attention, and it is one of the times during which you really cannot afford to have loans denied due to bad credit.

Flexibility to pay any bill

Obtaining such a loan is easy and beneficial to pay emergency bills. Not only unexpected ones, but any bills that may be overwhelming you at that moment. There’s no need to let your finances fall behind because of your bills accumulating or because of an unforeseen accident. You can use this type of loan to pay any bill, whether it’s an outstanding one or one that cropped up unexpectedly and needs to be paid immediately. You can count on these loans to help you through tough times such as these without any hassles when it comes to paying off important bills and getting their weight off your shoulders.

Easy application process

Getting a cash advance loan without credit checks is extremely simple. You can apply online, which is the fastest method. If you don’t apply online, you can still get the cash you need within 24 hours. Bank loans take extended periods of time, and you usually have to deal with requirement after requirement, but there’s none of that when it comes to this type of loan.

All you have to do is show that you have an income to pay back the loan when the time comes. This qualifies you to be approved for a loan, making the process simple and straightforward, which is how most people like things done when in the middle of a crisis.

A few facts to take into consideration

Remember, a cash advance loan can accumulate high fees if it is not paid back on time.  While cash advance is a viable option to turn to in case of an emergency, it is also important to remember this factor.

This is mainly due to the risk factor that comes with no credit checks. Use these loans only as a last resort. When you pick your lender, make sure the rate offered is one you can pay back within the time period that is agreed upon so that there are no hindrances in this process.

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