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How To Ditch Money Wasting Habits

We all have bad habits and guilty pleasures. We all have difficulty resisting temptations, and giving in to temptation is one of the first bad habits that need to be broken if you want to save money. If you’re hoping to curb your spending and save up your hard-earned cash, here are some tips to help you ditch your money wasting habits.

Step 1: Keep track of your spending

If you want to ditch your money wasting habits you first need to find out what those bad habits are. While it might be tedious and longwinded, making a list of your spending habits is a great way to find out where you’re going wrong with your spending. Use your phone or a notebook to write down everything you spend money on and, after a week or so, read it over and see for yourself what you’re spending your money on.

Step 2: Don’t pay other people to do what you can do for free

If you’re aware that you can do something yourself, why would you pay for someone to do it for you? If you can make your own lunch, why are you buying your daily lunch from the shops outside your work? Why would you pay someone else to change your car tyres when you could just as easily do it yourself? Learn how to do basic things, like cook and perform basic repairs around your home, to save money that you don’t have to spend.

Step 3: Stop being fussy

If you only have one particular brand of something you will always buy then now might be the time to try something different. Break the habit of being fussy in you want to save money. Instead of buying branded options, look form unbranded and inexpensive options. The same can be said for expiration dates on food and clothing items from certain shops. Try out some less expensive alternatives.

Step 4: Get your bills organised

If you want to stop money wasting then you need to break the habit of leaving your bills and payments until the last minute and not reading your contracts properly. When you don’t keep track of your payments you could end up overpaying, underpaying or not paying bills at all. When this happens, you could end with some pretty severe fines and piled up interest. Pay your bills on time and in full to avoid negative consequences. In the event of a financial emergency, you could use a payday loan from Wizzcash to pay back what you can’t afford and avoid any additional debt that might come your way.

Step 5: Learn mindfulness and self-control

Sometimes we spend without even thinking about it – it can just happen without us noticing. If you want to break some of your bad spending habits you need to start being more conscientious about what you’re buying. As you’re walking up to the cash register to pay say to yourself ‘do I need this’? If the answer is ‘no’, then you need to learn to be able to put it back and walk away. This may be difficult at first and it will take some conscious effort, but after a while you will start getting used to second guessing everything you buy.

Generic advice is not a service regulated by the Financial Conduct Authority.


Peer To Peer Lending vs. Payday Loans

There are lots of different types of loans available to UK residents and a lot of people aren’t completely aware of the differences. Peer-to-peer lending and payday loans, for example, are two different types of loans that a lot of people tend to be confused about. Not to worry, though. We’re here to help you learn the differences:

What Is A Payday Loan?

To start, a payday loan is a small loan that you take out from a direct lender. These types of loans are intended to be short term and are often used for emergencies, so you would normally pay back the loan within a few months to minimise the amount of interest you accumulate on your loan.

What Is Peer To Peer Lending?

Peer-to-peer (P2P) lending, however, is something completely different. P2P lending is a service that puts independent borrowers and lenders in touch. So, rather than borrowing from a company, you’re borrowing from an independent person and they will be the ones to decide the interest on the loan and how soon they want it paid back. This can be extremely daunting to some people, as they do not have a brand or company name for them to feel secure about.

Why Do People Choose P2P Lending?

P2P lending gained popularity some years ago for a number of reasons. One of the reasons why a lot of people turned to P2P due to the high interest rates that many payday loans had before FCA regulations were implemented in 2015. Now, with Wizzcash you can pay back your loan in instalments at a fixed interest rate of 0.8% per day – all of which you can see with our online loan calculator when you apply.

P2P lenders screen their lenders and borrowers via credit checks, to make sure that they will pay back, and some people find comfort in this. This can be a benefit as well as a disadvantage for a lot of people who want to borrow through peer to peer lending. If you’ve ever defaulted on a payment in the past or filed for bankruptcy, you’re more than likely going to be refused a loan from P2P lenders, and they are equally going to be less versatile when it comes to paying the money back. But, this also applies to people that don’t have much of a credit history at all. If you’re quite young and don’t have much experience when it comes to paying bills then you might be rejected on the grounds that you’re a risk of failing to repay.

Benefits Of Payday Loans

On the other hand, payday loans aren’t regulated in the same way, but that doesn’t mean that they are any less safe. While many payday lenders check the credit score of their potential borrowers the requirements tend to be a lot less strict. This is because payday loans are meant for short-term financial emergencies, but companies also understand that not everyone is going to have a perfect credit history. Wizzcash screens applicants with a number of affordability checks which include a credit check and tests their eligibility by having them fill out an online form, all while following FCA guidelines. If you earn at least £750, are a UK resident, and are 18 years of age or older, you are eligible to apply for a payday loan with Wizzcash.

So, if you haven’t been approved for a P2P loan or you’re looking for a regulated and responsible lender to help you with a financial emergency, you could consider taking out a short term loan with Wizzcash.

Generic advice is not a service regulated by the Financial Conduct Authority.


Millennial Spending Habits

The term ‘millennial’ is often thrown around in businesses and in the news, but a lot of people aren’t quite sure what a millennial actually is. Quite simply, a millennial is a demographic also known as Generation Y or the Net Generation, and consists of people who were born between 1982 and 2004. However, one of the things that millennials have taken a hit with recently is their spending habits, and the way that they buy products. The Net Generation are known to be very tech savvy, and because of this a lot of businesses tend to believe that they’re doing a lot of their purchasing online. The latter of the millennial generation are also nicknamed Generation Rent and Debt, but this isn’t necessarily the case. Here, we’re trying to get inside the head of the millennial generation and taking a closer look at their spending habits.

Things Millennials Are Putting Off

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One of the biggest differences between millennials and their parents (Generation X) is that they are beginning to put off some of the big milestones in life. One of the biggest is marriage, with reports suggesting that an unprecedented number of millennials will remain unmarried through to age 40, and the marriage rate is predicted to drop to around 70%. Compared to the rates for boomers, 91%, late boomers 87% and Generation Xers 82%, this is a significant drop. Other milestones that millennials are said to be putting off include buying a house, a study by Elite Daily showed that 59% would rather rent a house than buy one and 61% can’t afford a house, and buying a car – although a study of 1,500 millennials aged 18-34 by Mizuho Securities showed that 64% of millennials plan on buying a car within 2 years and only 5% rely on car-sharing services like Uber and Lyft.

Millennial Spenders vs. Millennial Savers

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A common misconception about millennials is that they do not save. However, research undertaken in 2015 by YouGov PLC covering a sample of 2028 adults aged 18-34 show that 16% save more than three quarters of their disposable income, and 23% save half each month. This is why the millennials demographic is starting to be split into two: millennial spenders and millennial savers. However, millennial spenders are three times more likely than savers to run out of money before payday, with 48% of spenders in the survey running out compared to 14% of savers. In addition to this, millennials are seven times more likely to have taken out a short term loan, 14%, compared to 2% of savers.

Brand Relationships

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A big change in attitude between Generation Y and Generation X is brand loyalty. Consumer research showed that 60% of millennials are often or always loyal to brands that they currently purchase from, but only 1% of millennials find that a compelling advertisement will build up a trust between them and the brand. However, this tech savvy generation are also looking to change the way brands communicate with them. 33% say that they rely on blogs before making a purchase, and only 3% rely on TV news, magazines and books when it comes to finding out information about products.
What’s even more interesting, is that 62% believe that if a brand engages with them on social networks are far more likely to be a loyal customer, showing how customer service is going to have to change in order to keep millennials interested. Interestingly, 42% of the same sample group would be interested in helping customers to develop future products and services, showing just how personal people want their relationships with brands and businesses to be when it comes to making a purchase and maintaining brand loyalty.

Day To Day Spending

While the tech savvy generation of millennials is said to prefer doing everything online, research by Mizuho Securities suggests that more millennials actually prefer otherwise, with 54% doing their shopping in physical stores. However, a Hanover Research study shows that 50% of millennials use mobile devices in order to research products and reviews before they purchase.
While there is a clear divide between millennial spenders and millennial savers, when it does come to spending money, it is clear that millennials prefer the finer things in life. One study shows that millennials are most likely to spend their money on eating out (54%), Socialising (51%) and Clothes and Fashion (35%) over other activities and purchases.

However, studies from the US show that while millennials do love to spend, 8/10 are value seekers. For example, 78% of millennials are more likely to select a brand with a loyalty or reward program than without one, and a study by advertising firm Valssis and market research firm Ipsos suggests that more than 90% of millennials use coupons to plan their shopping lists. This shows that while a lot of millennials do enjoy the finer things when it comes to spending their money which may have given them their reputation, (with 52% of millennials being labelled with a buy now, deal with it later mantra of impulse buying) they do spend a lot of their time saving money too – with 51% of millennials saying that their coupon usage has increased over the past few years.

Conclusion

Getting inside of the mind of a millennial is a difficult task, due to the hugely different points of view that people will have regarding the demographic of 18-34 year olds. While the average millennial will have around £2931 in outstanding debt, excluding things like mortgages and student loans, they do believe that their parents are one of the biggest influences on their money management habits, with 63% believing that their parents or guardians have had a positive influence. By 2020, it is predicted that millennial spending power will reach around $1.14 trillion annually, showing just how diverse of a group this is.

Generic advice is not a service regulated by the Financial Conduct Authority.

 

Sources:

http://www.bentley.edu/impact/articles/nowuknow-why-millennials-refuse-get-married

http://www.experian.co.uk/blogs/consumer-advice/wp-content/uploads/2016/01/Millennial-Me-and-My-Money-Report_FINAL.pdf

http://uk.businessinsider.com/goldman-sachs-millennials-spending-habits-2017-1?r=US&IR=T

https://www.forbes.com/sites/danschawbel/2015/01/20/10-new-findings-about-the-millennial-consumer/

http://www.mytotalretail.com/article/breaking-down-millennial-spending-habits/

http://uk.businessinsider.com/new-report-sheds-light-on-millennial-spending-habits-2017-1?r=US&IR=T

https://www.digitaldoughnut.com/articles/2016/june/retail-for-millennials

http://www.mytotalretail.com/article/breaking-down-millennial-spending-habits/


Things To Consider Before Taking Out A Short Term Loan

As we go through life, we are going to be hit with a number of unexpected surprises, some of which will affect our bank balance. In the past, we were told that the common route was to pay for everything out of our own pocket and try to avoid taking any credit or loans to support you during the difficult times. However, times have changed and short term loans are becoming a popular tool for people experiencing an emergency situation. If your car suddenly breaks down or your boiler stops working unexpectedly and you find yourself with no options to pay for the outgoings, a short term loan can be an important asset to keep you on top of your money troubles. However, it is always advised that when taking out a short term loan you take out only what you need and think realistically about how long it will take to pay back. You will have clear understanding in regards to the structure of your repayment with our online loan calculator, so by being responsible with your lending, there shouldn’t be any troubles.

However, when taking out a short term loan, there are few things you must consider:

Interest rates

Always take into account the interest rates of your loan. You need to have a firm understanding as to what you are paying back so you are not faced with any surprises when it comes to the repayment. All different short term loan companies will offer different interest rates and all are very competitive. We offer a respective 1265% APR and we show that to you clearly and simply, which is what you should see when taking out a short term loan. So, no matter which lender you use, always double check the given information. Any FCA regulated lender will have a cap of 0.8% daily interest so make sure that you only borrow from a regulated lender.

Length of the Loan

When taking out a loan, you will always know how long the loan repayment will be. It is discussed and agreed upon before actually taking out the loan, but what you must consider is how long you want it for. This is where the responsibility comes into contention. Think sensibly about how soon you can afford to pay it back – the earlier the better. Some lenders, like Wizzcash, will even let you pay back your loan before the agreed time without a fee so be smart to keep your interest down.

Reasons For The Loan

Always take into account why you need this loan. Can you live without it or do you really need it? Never take out a short term loan for any unnecessary spending. Short term loans are designed to help you with emergency expenses, so spending them frivolously might result in some unnecessary debt. We understand that, at times, life can get rather difficult and towards the latter stages of the month you might not have money to spare, so a short term loan is there to help you make your way until pay day. For additional information, check out this infographic which will advise you on how to use a loan wisely.

Generic advice is not a service regulated by the Financial Conduct Authority.


Ways In Which New Parents Can Protect Their Finances

If you are planning for the arrival of a new baby to your family, it can be very exciting and a joyous time for you and all your family and friends. However, have you had the time to consider the implications that a child might have on your finances- and if you have, have you thought about how you will be able to better manage the major financial change that will come around with the birth of a baby? Between buying clothes, nappies and toys, your budget can quite easily be blown out of the water, leaving you in the red. This could result in your credit score dropping without you even realising it and before you are able to change the outcome. If you are an expectant parent or a new parent, then you really cannot afford to let your credit score to slide. The following tips should help to ease the financial burden that can come around when you become a parent…

Create A New Budget

If you had a budget before your baby arrived then you are well on your way to managing your money effectively. Now that there is going to be a baby in the mix, the numbers you originally had are more than likely to change, particularly in the long term. From feeding supplies to child care, having a baby can be expensive but it doesn’t mean it should be impossible. Once you have your baby and start to get a sense of how much you are spending, sit down and make a new budget that accurately reflects your expenses. It will help to track where your money is going and you can keep better track of where there are cost-saving opportunities.

Pay Your Bills Via Direct Debit

Particularly in the first few weeks of your baby being born, you may find that your life is increasingly hectic and you will be juggling doctors’ appointments and a steady flow of visitors. This, combined with a lack of sleep and adjusting to a new routine, can make it all the more easy to forget to pay your bills. All it takes is one missed bill payment to send your credit score spiralling. Your payment history counts for 35% of your overall credit score, so be sure to schedule your bills to come out automatically by setting up direct debits. It could make all the difference to your credit score and give you one less thing to organise and worry about.

Loans

While many expectant parents are conscientious and try to save up as much money as possible ready for the arrival of their baby, there are always instances where accidents or emergencies happen and they are left out of pocket. If you are in need of a quick cash injection for whatever reason, then it may be worth exploring the option of applying for a short term loan. Short term loans will allow you to take out anywhere from £100 to £1000 to be paid back over a period of weeks or months and can be just the thing you need if you find yourself short of money before payday.

Don’t Overdo Your Baby Shopping

When a baby is on the way, it can be all too easy to go on a baby shopping binge and buy all the clothes, toys and accessories that shops are filled with nowadays. Try to differentiate between the necessities and things that are just added extras and remember that you will probably be gifted certain items by your friends and family anyway!

When it comes down to ways in which you can protect your finances as a new parent, it all comes down to making smart decisions with how you use your money and how well you keep tabs on your bills too. Following the aforementioned tips will go a long way in helping you avoid unnecessary problems with your cash flow and allow you to fully enjoy the introduction of your little bundle of joy into the world!

Generic advice is not a service regulated by the Financial Conduct Authority.


Top 5 Reasons Why You Should Have An Emergency Fund

An emergency fund can best be described as a stash of money that is set aside to cover the financial surprises that life throws at you, often at the most unexpected and undesirable of times. These unexpected events can be as stressful as they are costly and can come in the form of a job loss, medical emergency, car troubles, unexpected home repairs or unplanned travel expenses. The beauty of having an emergency fund is that you have a safety net and the peace of mind that comes with knowing you are able to pay off any bills without getting into debt. Aside from financial stability, here are 5 other reasons why having an emergency stash of cash can really make all the difference to you and those who are financially dependent on you:

Keeps Stress Levels Down

When an emergency payment needs to be made, it’s no surprise that it can threaten your financial wellbeing and causes a lot of stress, both for you and your family. If you are living without a safety net, you are essentially living on the financial edge with only sheer hope keeping you from running into a crisis. An emergency fund gives you some added confidence and helps you tackle any monetary problems without worry getting into the mix.

Keeps You From Being Reckless With Your Money                                                                  

The best way to store your emergency money is by keeping it out of sight and out of mind. If you are able to put a little aside each month and aren’t tempted to dip into the fund when you next want to buy another handbag or car, it means you are becoming better at managing your money and will develop good habits when it comes to saving.

Stops You Making Bad Decisions

Having an emergency fund makes you more aware of your spending and means you are less likely to resort to relying on things such as credit cards.

You Can Rely On Yourself

Let’s face it; no one wants to rely on someone else when it comes to their hard-earned money. Being financially independent is one of the great things about going to work and makes the long hours spent in the office worthwhile. If you know you have an emergency fund to save you from dealing with an unexpected expense, you can take pride in the fact that you are able to face anything life is likely to throw at you and make it through to the other side.

You Don’t Fall Further Into Debt

If an unexpected expense arises and you are forced to use your credit card or borrow money from someone else, there is always the chance that you are unable to make repayments and have to get into more debt in order to get out of the initial lot of debt. If you have an emergency pot of money you can dip into, you are able to carry on with the rest of your payments without juggling repaying a lender too.

What Happens If You Don’t Have An Emergency Fund And Need Some Extra Cash?

While it is always best to prepare for the worst, there may come a time when you do struggle to make ends meet. It is important to always stay calm and know that there is always a solution for a short term cash flow problem. If you are ever in need of a cash injection to see you through until payday, then why not consider a short term loan? A short term loan could make all the difference for those needing to receive a lump sum of money into their account quickly, in order to pay off an emergency debt or make an unexpected payment. A short term payday loan, when used wisely and sparingly, can make all the difference when it comes to balancing the books and keeping you out of the red.

Generic advice is not a service regulated by the Financial Conduct Authority.


The Ins and Outs of Your Credit Score

If you are unaware of what a credit score is or you’ve never checked your own it is really important to know that it is very beneficial throughout your life. Your own credit report serves as a sort of summary for your financial reputation. Its basic function is to tell lenders if you are paying back all your credit outgoings, paying off those standing orders and any reoccurring debts you come across, in addition to this, it also keeps notes of paying your finances on time and meeting your financial obligations.

Where does it come from?

A credit score is derived from information in your credit report, everything you pay-out impacts your credit rating. Phone contracts, overdrafts, store cards and credit cards all have an effect on your credit rating, and the way you pay these back and the time it takes are all factors in determining what sort of credit score you will have. Because your credit report reflects how you have handled available credit in the past, it therefore predicts how likely you are to pay your bills in the future based on information in your credit report. If you want to take out a short term loan with a lender who practices responsible lending such as Wizzcash, they will take into account your credit score when it comes to determining whether you can afford to pay it back.

Ways to build good credit

    • Make sure you pay on time and in full: to build good credit, you need to spend that credit. You can borrow as much as you want as long as you pay it back on time and in full. This is what makes agencies impressed with your credit score, because they can see despite you spending this credit, you are in fact paying it back when and where it is needed. This really shows that you are reliable with your credit thus giving you a good credit score. If however, you miss a payment on finance or on a payday loan for example, this can have a negative effect on your credit score which can impact the likelihood of being able to borrow money in the future.
    • Try to keep with one credit card: you may want to dash away your old account and get a new credit card, but if you didn’t know, older accounts which are kept open with occasional use throughout the year helps you to retain a valuable credit history and may even help your credit score.
    • Check your credit score for errors: it’s really important that you frequently check your credit score because there might be some errors that are affecting your credit score. It’s true when I say; credit reports have errors serious enough to affect the creditworthiness of the subject of the report.

Making sure that you have a healthy credit score proves pivotal in regards to the progression in one’s life. Whether you want a mortgage, car on finance or just want to be eligible for a credit card to help you with those extra costs, maintaining your credit report will help a large amount when it comes to doing these things.

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Bank Overdrafts vs. Payday Loans

If you’re a little short of money this month and are considering the best way to make your money last longer, its more than likely that you have to choose between going into your overdraft or applying for a payday loan. While it is arguably better to curb your spending habits and live within your means to avoid having to seek financial help from banks and payday loan companies, sometimes emergencies happen and life throws you a financial curveball that leaves you feeling stressed out about how you are going to afford to get through the month. We hope to reveal the truth behind whether choosing to go into your bank overdraft is more cost effective than getting out short term loans and the facts may surprise you!

It can be said that the majority of people in need of a little extra money for the month will think that going into their overdraft will be the best solution (that or using their credit card). However, research conducted recently by Which? has suggested that is it cheaper in many instances to take out a payday loan than it is to fall into an unplanned overdraft. While payday loans have, in the past, been given a bad name, it is interesting to see how the latest research will change people’s opinions, particularly when it has been revealed that some overdraft fees can accumulate to four times as much as that of payday loans!

Some banks have been revealed to charge anything from £6 to £10 a day for going into overdrafts that are unplanned. Other banks charge something along the lines of £80 a month for being in your overdraft too, which can add up over time. In comparison, the FCA has put rules in place to cap how much a payday lenders can charge you per day in order to reduce the amount you have to pay back on top of what you have borrowed – banks on the other hand, are not required to do the same. So, considering your payday loan lender can only charge a maximum of 0.8% of what you borrowed a day and you borrowed £100, you will only need to pay back £122.40 as opposed to being charged £80 and making you £180 short the month after if you went into the overdraft in your bank!

With payday loans you are always made aware of the amount of interest you are going to have to pay back on the amount you choose to take on loan. Banks are trickier to keep track of as you often may not remember about the charges listed in your terms and conditions until you are unlucky enough to have to resort to spending into your overdraft. And, while planned overdrafts are cheaper, many regular accounts don’t come with them. Payday loans have become more affordable thanks to the FCA ruling that came as a result of previous debt problems that occurred as a result of uncapped interest rates. The cap enforcement has meant that payday loans could be considerably safer than bank overdrafts and could make for a more viable option when looking for a short term cash solution.

Generic advice is not a service regulated by the Financial Conduct Authority.

 

Which? Research Source http://press.which.co.uk/whichpressreleases/overdraft-charges-more-expensive-than-payday-loans/


What Can £1 Million Buy Us?

Henry David Thoreau (the American poet) once said that ‘wealth is the ability to fully experience life’ and here at WizzCash we couldn’t agree more. We have all at some point or another probably felt constrained by the amount of money we have in our purses or bank accounts. The economic situation in the country, from rising inflation to the outrageous cost of housing, has left many people far worse off than people were 40 years ago. Millennials are currently the main ones suffering; working more hours than ever for less money and are also burdened and weighed down by their massive student loan debts.

While this situation is unlikely to change for the time being, it doesn’t stop us from imagining a time in life where money worries become a thing of the past. Our celebrity obsessive culture and rise in social media has made it all too easy to take a glimpse into the life of the super-rich. The lives of wealthier folk have always created a sense of fascination and are a great source of inspiration for many people. Aspiring to a successful life is something most of us can relate to. Let’s face it; it’s always fun to imagine what a million pounds looks like!

Property

Property is by far the greatest cost many of us will experience in our lives. £1 million could mean you could get a mortgage up to 5 times that amount and get yourself a super swanky pad! Alternatively you could buy a few home around the world so that you can easily take a weekend break to New York or Paris if you so wished. While unused, these properties could earn you a great return if you let them out too!

Leisure

Holidays can seem like a struggle to save up for on a regular wage, so imagine if you had £1 million and could take your family and friends absolutely anywhere? £1 million pounds could easily buy you some of the most glamorous and extravagant holidays and will also mean you can take more of them… Sounds like pure bliss!

Investment

If you ever earn a million pounds, it will probably make sense that you invest some of that amount as it’s always best to consider the future and the fact that that mass of money won’t last forever.

Vehicles

Cars are a favourite thing for the super-rich to invest in. As your salary rises, it makes sense that your expectations in terms of cars alters. Some of the fastest and most glamorous supercars can set you back more than £70,000! Interestingly, while one million pounds is an incredibly amazing amount of money, experts have said that it’s not enough to buy you your own yacht! I guess we will just have to settle with a Porsche then…

While it’s great to day-dream of the day you become a millionaire, some of us could be left waiting a while! In the meantime, if you’re in need of a little extra cash injection for a financial emergency, why not consider short term loans? They are a great way to give your monthly income a little boost and can be used for anything from emergencies, save you from being overdrawn and to tide you over until your next payday. Payday lenders are often able to get the money you need into your account on the same day you apply.

 

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Generation Rent & Debt

Currently in today’s society, the younger generation are increasingly finding themselves in all sorts of debts whilst at the same time finding it hard in regards to working their way up the property ladder. However, with payday loans becoming more popular with the nation, we are beginning see how effective and simple they are in regards to helping you in those tight and demanding situations, thus getting yourself back on the straight and narrow.  With everything becoming expensive in our society, we are finding ourselves frequently out of pocket, yet with the option of a payday loan; it give us something to rely on whilst implementing a structured and safe payment plan with the payday loan company you are using.

Payday lending is pretty simple and caters for all ages. If you find yourself struggling and is in urgent need for short-term cash, payday lenders are a very effective way to support you in these difficult situations. With a number of regulations and caps implemented by the FCA, unfair lending is no longer a problem, and responsible lenders will only approve applications of those who can genuinely afford to pay it back. The idea of a payday loan is to help out those who are in a financial emergency, and while they should always be a priority to pay back due to the fees on late repayments and high interest rates, they truly can provide a helping hand for those who need them most. Numerous times throughout our lives, something unexpected will occur forcing us to pay out a significant amount of fees making our financial schedules sway out of the expected. Some may turn to relatives or families but in the long term this could affect your relationship with them, so by turning to short-term loans can be an efficient and secure way to pay off those bills.

The property ladder

Because rent prices are increasing far beyond the amount we take from our wages, a juxtaposition is surfacing were we are forced into spending 50% or more of our wages towards our rent. This can lead to many beginning to feel rather stressed due to the lack of funds. While some may turn to the bank, some might be turned away, and this can have a negative effect on a person’s credit score, making it even harder to borrow money in the future. It’s proving rather difficult for the younger generation in regards to getting themselves on the property ladder.  Mortgage payments are becoming too high and are crippling this younger generation. The reason why it’s called a property ladder is due to the fact not all of us buy a property and stay there forever, many of us buy a starter home and build equity and then move onto a larger property. However, how can we build this equity if the money we are bringing in doesn’t cover half of our outgoings?

Knowing that payday companies exist and are willing to help presents a short term solution but the young people will have to learn how they can prioritise their finances, as to not be depending on payday loans and gradually build up their finances. It is important to remember that payday loans should never be relied on, and should only be used as a short-term solution for a financial emergency, but they are a good option for those who are in need of emergency funding that they would not be able to receive from the bank. In addition to this, you may be able to get an instalment loan which helps you to manage the money that you pay back as and when you need it. The media attention to payday loans is negative, but with tighter regulations implemented by the FCA, you will find that payday lenders offer a great sense of security for those who need it most.

Generic advice is not a service regulated by the Financial Conduct Authority.