If you spend more than you earn on a regular basis, this is a bad practice. To get around this situation, if you opt for a payday insurance, it will be a risky solution. Payday insurance companies often take advantage of your need and lead you into a debt trap.
The most obvious disadvantage of a payday insurance is the high cost. Payday insurance APR ranges from 400% to 800%. Think of your investments even in high interest stocks, you can get 20% to 30% annual return on investing in stocks even though investments in stocks are considered high risk.
Therefore, consider all possible alternative methods before choosing a cash advance for a payday insurance.
Payday insurance borrowing situation arises due to poor financial planning. I suggest that you prepare a realistic budget at the beginning of each month in order to maintain a balance between your earnings and your spending. Avoid unnecessary purchases. Also save some money every month. Your savings will be counted in times of crisis. Consider seeking help from a consumer credit counseling office.
Ask your creditors to do you a favor by waiting until the next payday. If you can manage it to do this, you don’t need to borrow the insurance, thus you can save 15-30 USD by not paying the insurance interest!
Use your credit card to make urgent payments. The interest rate on a credit card insurance is usually very low; You don’t even have to pay anything in interest if you pay off the insurance within a month. Again, you can save anywhere from $15 to $30 by not paying the insurance interest.
Ask your bank or credit union for a short-term insurance. The costs of these insurances are so that you can easily afford them.
Ask your employer to provide you with a portion of your salary in advance so that you can afford your emergency bills.
?? Think of borrowing money from your friends or relatives. In fact, for a period of one to two weeks, no one would prefer not to provide you with money (I strongly believe!) unless you have a bad credit history with them. Thus you will meet your money requirements with absolutely no interest charges! Also think about the inconveniences if you can’t repay the insurance on a specific date to the payday lender!!
?? Consider making arrangements with your banker regarding an A/c check withdrawal facility in order to protect yourself from being charged additional fees for returned checks. This facility costs you less than $5, and sometimes no fees are needed at all!
?? When you’re shopping for credit, check the annual interest rate and other official fees for the various credit offerings. Thus you can avoid higher monthly fees with lower credit cost.
Many social groups and communities provide urgent assistance either directly or through various social services programmes. For example, I could mention “The Federal Emergency Assistance Program for Low-Income Homes?? Provides financial assistance to low-income families.
?? There are many insurance companies that offer a $500 to $100 insurance for service workers and retired military. The APR of these military insurances ranges from 34% to 40% which is 10 to 15 times cheaper than a payday insurance.
There are also many consumer finance companies that offer small consumer insurances at an annual rate as low as 60%, which are also cheaper than payday insurances.
Do your homework when you are about to take out a payday insurance. Find a low interest payday insurance. Gather all the information about a payday insurance before you borrow it. For more detailed discussions on alternatives to payday insurances, visit [http://www.ampmcash.com/insurance-alternative.html]. If you have any issue or query regarding payday insurance, join our discussion board at [http://www.ampmcash.com/talk]