Non-traditional lenders, such as Blue Trust Loans, offer fast and easily approved loans. Payday loans, installment loans, title loans, and personal loans can be applied for online with minimal requirements. Those with no credit history, past credit problems, or high debt to income ratios will most likely not be approved for loans from a bank or credit union.
Costs of Fast loans
Non-traditional loans are available at very high interest rates. Penalties for late payments are high, and defaulting on certain types of loans may result in the loss of the car or house. Responsible lenders make terms and conditions quite clear to applicants. Many also provide money management tips to help applicants consider less expensive alternatives before taking out a loan.
In these times of multiple credit cards, buy now and pay later purchasing terms, and free trial offers for services, most people have very few skills with which to manage money. Lender websites will often have separate sections that offer tips to avoid financial emergencies. The most basic of ways to avoid being in a position of needing fast cash is to make a budget. That helps people live within their means.
Making a Budget
The process is simple, it is sticking to it that is the problem. Make a list of take-home income for the month. Make a list of all essential expenses for the month. Include rent or mortgage, utilities, transportation expenses, groceries, and any other bills. Include a small amount to put into a savings account.
If the bills add up to more than the income, make some changes so those two lists balance out. That may be a second job with part-time hours, working from home a few hours a week, or cutting expenses. Start with non-essential monthly bills. If that cable bill is over one-hundred dollars because of premium channels, get rid of the extra channels. Cut the cell phone minutes or storage space back to minimum plans.
Whatever is left over after all the bills are paid is what is available for eating out, entertainment, new clothes, a video game, or anything else that is desired. If there is nothing left, stay home, cook, and re-evaluate the current lifestyle. Do not risk finding yourself in an endless cycle of debt because of an installment loan for a weekend away.