Save MSave Money to Avoid Payday Loansoney to Avoid Payday Loans
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Save money to avoid payday loans

Saving Money to avoid payday loans

People get stressed at the thought of saving money. The habit of saving money should be inculcated right from the time we are young. There are so many expenses which might just crop up at any time and if we do not have the requisite resources, then we are sure to get stressed.

Save Money to Avoid Payday Loans
Save Money to Avoid Payday Loans

To avoid such a situation, we need to start saving money today by ourself. The habit of saving money gives us financial freedom and you can live comfortably and happy life. Adhering to simple and time-tested personal financial tips can help you save considerable amount of money which can be fruitfully used for something else and help you avoid payday loans.

Try out free samples

Companies which launch new products offer free samples of their products. Go in for these free samples. Check out with these companies if they are offering something for free. Check out the websites of these companies online and make a complete list of such companies.

Make improvements and changes in the way you spend

Make Improvement sand Changes in the way you Spend
Make Improvement sand Changes in the way you Spend

You can always make changes in the way you spend your money. Bringing about simple changes in your spending habits will help you spend less. Start paying money by cash and refrain from using the credit card. People who use the credit card end up buying excess things. This mans that you will not shop if you do not have the cash to pay for it. Buy only those things which are necessities and which you can afford.

If you are totally addicted to shopping, then you are without doubt a shopaholic and might end up with payday loan problems. This habit can be changed and this is sure to benefit you. Pay off the bill and totally forget about it. Do not keep credit cards in your wallet as you would be tempted to shop and spend. Write down things which you feel are a complete emergency and which you cannot do without. You are supposed to use the card only for such items.

Impulsive buyers lead to payday loan problems

Impulsive Buyers Lead to Payday Loan Problems
Impulsive Buyers Lead to Payday Loan Problems

There are many individuals who enter the shop for buying one item. But the problem is they end up buying too many things and purchase everything they see. Impulsive buying is dangerous as it would drain your finances and can lead to payday loan issues. Companies lure customers by offering generous discounts and offers and we are tempted to buy them even if it does not serve our purpose. The retailer and wholesaler stand to benefit by this and we are in no way benefitted. Hence, get over this habit of buying on impulse. Think smartly and shop smartly. Make a check list of things which you need and only stick to this list. Once you have filled the cart with the required goods, pay the money and leave the store without doing any further window shopping. This is extremely dangerous as you will end up buying more items. A strict buying pattern slowly becomes a routine and you are sure to save money. Your wallet too is going to feel happy about this change.

Never spend everything what you earn. Set aside at least ten percent of your income and invest it wisely and prudently. This money will be of great help during your retirement and for the future also. Coupons are the best way of spending wisely. Investing in coupons is advised.

Pension Early

Cash My Pension Early?

Should I Cash My Pension Early?

My Pension

When money is tight and the recession is hard, people throughout the UK are looking for smart ways to keep their heads over water, pay bills and put food on the table. With the cost of living continually increasing and job situations worsening, it can be a scary time.

My Pension
My Pension

Because it is such a terrifying time for those that are living with these issues, people often look for quick-fixes such as short term loans or remortgaging. Although there are many harsh downfalls to be financially stretched, before you do anything you may regret make sure that you are properly knowledgeable about your options and what they might mean for you in the future.

What is pension liberation?

One of many options available is pension unlocking, also known as pension liberation or pension release. This option enables you to take the benefits of your pension before you retire. Even though this sounds like a great idea, it doesn’t always work out the way in which you expect it to. Usually, you can only take money from your pension once you have reached 55 or over.

For those that are below the age of 55, unlocking your pension might not be quite so straightforward. Here’s why…

Can I cash my pension?

Can I Cash My Pension
Can I Cash My Pension

Although most organisations do not allow you to access your pension funds before the age of 55, some schemes claim to provide you with “cash in my pension“ facility even before you retire simply by borrowing from your pension fund. However, simple is not exactly the word we would use for it, because many of these schemes try to trick you into paying back more money than you realise, without giving you much warning at all.

How do these schemes work?

The way in which these schemes work is by offering you 50% of your employee occupational pension fund as cash. You will be told that there are no upfront fees or deductions from your pension pot (which isn’t exactly true as you will find out the further you read on). Once you agree to the scheme they will then take full control over your entire pension fund simply by transferring it into a separate corporate bond, but often they won’t inform you of this side of things.

How do These Schemes Work
How do These Schemes Work

The company that issues the bond will then agree to loan you 50% of the amount transferred to them. Even though the company does not state anywhere or inform you of any fixed-loan repayment schedules, both the loan and the interest will need to be repaid in full before you retire.

These fees for the scheme will be taken out of the remaining funds in your pension pot, but at this point there is nothing you can do to stop them because the scheme has now been handed over full control of your pension.

The scheme will not tell you exactly when the charges being made are, neither will they tell you the precise level of these fees or charges, so your likely to end up with less money than you started with.

What is the investment risk?

If that’s not enough to put you off already, then you might want to think about the risk of pension unlocking. The actual value of you pension depends on the performance of the reserves in it. Which means if there is poor market performance, the value of you pension will be reduced, but the amount you repay back stays the same.