It will be interesting for payday loan companies to find out how the shutdown affects them. People who worked in government have been able to have a steady paycheck for years. People’s budgeted expenses will suffer from a bad case of the hiccups if there are cuts in staff or hours lost. These government workers are not losing their jobs and will be able to return to work when things settle down. While they have not lost their job and their hours are not cut permanently, they will lose a portion of their monthly income. Some people may look to payday loan lenders for some extra cash until they have recouped their income. People who have an emergency savings account will be able to repay the loan quickly. This money will be used for any losses and rebuilt when regular paychecks return on track. A good financial plan can help run a household.
Many people work from paycheck to paycheck but have never been able to open a savings account. It can be extremely stressful to find out that a large amount of money is missing from your next paycheck. People will use their credit cards to pay for everyday living expenses. While maintaining their lifestyle, many will exceed their credit limits. People who are financially savvy will cut back immediately to reduce their debt. To save money on future bills, some will even use the option offered by their cell phone provider to freeze the account. This puts the service on hold, without cancellation there are no penalties but it is only available for a short time. This could mean that you have to cancel your weekend plans, postpone the trip you had planned for your family or send the kids to school with brown bags lunches. There is not much credit available for those already struggling with credit. Other money options will be needed.
While some people will be able to rely on their family and friends to help them through difficult times, others will need to rely on other lenders. When a similar crisis occurs, short-term lenders like online payday loan companies often experience an influx in applications. Many others have suffered similar hardships to the government workers. It is possible to make changes to your financial plan and include an emergency savings plan for those who have jobs or scheduled paychecks. Prepare for the unexpected. According to most financial experts, an emergency savings account should contain at least six months worth of bills payments. This figure is too high for most workers. This is why it is best to take out a small amount from each paycheck and put it into an account. It should not be touched for anything other than a financial emergency. Leave additional credit card debt and online payday loans to the wayside when you can protect your own finances.
