Unfortunately for many people, the paycheck to paycheck syndrome is a reality. If you fall into this category you know all too well the delicate balancing act you perform in order to get from one month to the next. When you live life this way, anything that may come along such as a car repair, school tuition or an unavoidable home repair, you have to make the unfortunate decision to put a scheduled bill off for a week or so and then the game of catch-up continues.
An installment loan may be your best option
Instead of delaying a necessary bill you could borrow from a family member or sell anything of value. If this is not a possibility, you could contact your bank and apply for a personal loan, but if your credit is not good the chances for getting approved are slim. Another possibility, for the short-term, is an online installment loan with a company like MaxLend.com. Maxlend Loans provides personal cash loans and installment loans in amounts up to $1250 as an alternative option to payday lending. Key benefits include minimal eligibility requirements, fast-funding and flexible repayment. Qualified applicants must have a social security number, an active checking account, and a verifiable source of income. While this may offer a quick-fix to the immediate problem at hand, it’s not something you want to revisit any time in the near future. By taking out a loan, you’ll also have to make sure that you can repay it. You can opt to take lower payments and stretch the loan out for 24 months or you can decide you get rid of it quickly and have it for only a year. Unfortunately, no matter which one you choose it’s going to increase your outstanding monthly bills.
A fresh start
While at this point in time you may think there is no way to establish a budget, this is something you must do in order to avoid another disaster in the future. First, take a few minutes and sit down with your bills. It’s important to make a complete list of everything you have to pay each month. Then write down your income. If your income is more than your bills, you can make a few changes in your spending habits like bringing your lunch to work, reducing your cable bill and shopping for only what you need. If, however, you take in less than you have to pay out then you may want to consider taking on a second job until you pay off a few of your bills.
Pay yourself each month
As part of your newly established budget, you need to pay yourself weekly. This money goes directly into a savings account as your emergency fund. You can start off small and then increase this amount as your income increases and you begin to pay your bills off. This will do two things. First, it will give you cash available for things that come along and secondly, it will give you a chance to enjoy a week off, yes a vacation, without using your bill money.
Changing your spending habits and approaching life prepared will help you to enjoy each day without the stress hanging over your head. It may take you 6 months or a year to recover, but once you establish a budget you’ll wonder why you didn’t do it sooner.