Friday, July 21, 2006

How do consumers know it’s summer, aside from those scorching temperatures? Try the numerous payday loan, mortgage and other loan offers they’re besieged by. Borrowers are constantly encouraged to charge a vacation to a credit card or take out a cash advance for a new boat.

Of course, these can have detrimental side effects; namely, an abundance of debt. This has become more true than ever thanks to the doubling of minimum credit card payments, the new bankruptcy reform law that took effect last fall and the extreme interest rates charged by most online payday advance lenders.

With this in mind, let’s go over a few tips for controlling those balances:

1. A budget knows no season: Just because the boss is in Hawaii doesn’t mean your budget is on vacation. Post your budget somewhere visible, like the fridge door, so summer can’t burn it out of your mind.

2. Stay old-fashioned: How did you spend summer days and nights as a child? Revisit old favorites: star-gazing, basketball in the driveway, frozen fruit pops, a cookout with friends, a trip to the local pool. You don’t need a payday loan online for these activities.

3. Take it easy on vacation: Try a camping vacation or a road trip. One study found that a family of four can take a weeklong RV trip for $483, compared to $1,169 for a car trip (staying in motels) or a painful $2,918 for a vacation by plane. For a getaway on the (dirt) cheap, pitch a tent in your backyard - and borrow your own indoor plumbing.

4. Think cold: Think “Christmas in July” and plan now for holiday purchases. Make sure you have a budget in place for seasonal gifts. Then, take advantage of summer sales to get great deals. This will help you not become one of the millions that turns to faxless payday loans for last-second shopping.

This entry was posted on Friday, July 21st, 2006 at 10:21 am and is filed under Advice, Consumer Debt.