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Managing Your Budget Shortfalls

In previous posts we covered the basics of setting up a budget for your expenses, and how to calculate your monthly income.

But what do you do when you have an unavoidable temporary income shortfall?

Of course, you could simply not pay your bills, bounce checks, and have your landlord threaten you with eviction. Not a pretty picture, and though it might seem easier at the time, it ends up being an expensive way to handle the problem.

Your utility companies will add a fine to your bill and cut your serviceóand when you get the service turned back on, youíll probably have to pay an additional deposit.

If you bounce a check, your fee will be a minimum of $35, PLUS another fee from the bank where your check was deposited, PLUS another fee from your bank if you donít cover your check in the required time frame.

So, whatís a better solution if you donít already have money set aside for an emergency?

Consider a short-term cash advance to tide you over and see you through this rough patch. Perhaps youíre saying, ďYes, but a cash advance costs money!Ē And thatís true, but itís not even CLOSE to what youíll pay in fees if you bounce checks or donít pay your bills.

Micro-Credit loans at PayDayHawaii are easy to apply for, and offer quick access to cash much more cheaply than the bank fees you would otherwise incur. PayDayHawaii fees run between 11% and 15%. If you get a Micro-Credit Advance for $100, that fee is then between $11 and $15ómuch less than the cost of bouncing a check, and with none of the hassle or credit damage.

A Micro-Credit Advance is a good alternative to a traditional loan. Quick access to cash can help pay the rent, fix the car, handle a sudden out-of-pocket medical emergency, or pay an overdue utility bill. If you need extra cash until payday, Micro-Credit is the quickest and most secure way to get fast cash. You can get more details about the Micro-Credit program on our website, or ask about it the next time youíre in one of our locations.

Of course, your financial goal is not to depend on loans; your goal should be to set up your budget in such a way that you donít get into a situation where a loan is necessary. But donít get discouraged if once in a while you do need a loan in a crisisóyou are still improving your financial skills, and a sudden emergency can happen to anyone!

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