Staying off of The Paycheck Loan Wheel

Remaining off of the Paycheck Loan wheel usually requires some help. Initially, you may be unable to pay the outstanding balances on the paycheck loans. As suggested below contact the lender and discuss re-payment possibilities. It can be very helpful if you have a plan and even can make a payment, however small. If you do arrange a re-payment schedule be vigilant about sticking to this plan.

Now, as a student who works, you may still be borderline poverty stricken. You may not be aware that there are often sources of cash available on campus for students. Some colleges have emergency loans for registered students. Some departments have similar programs. At one campus locally these amount to $200.00 for part-time students and $400.00 for full time. Additionally, campus clubs and organization sometimes have a few bucks available for members. These funds are almost always loans. So, once again remember these loans have to be paid back.

There is more. Staying off The Paycheck Loan Wheel takes maintenance. This maintenance includes diligence and support. Clearly as a student you are almost always in need of money.
If you have survived The Paycheck Loan Wheel you have paid for an expensive lesson in personal finance. Recognizing this can assist you in developing an awareness of your spending habits. Since money management has now become a priority some assistance might be useful.

Locally, maybe even on your campus, there are groups and sometimes even individuals who can offer help to students with money management. Sometimes this help is a support group. Sometimes this help is counseling. Maybe even a friendly talk with someone on campus, a finance instructor, a financial aid worker, someone you know in the Bursur's office, could provide clarity.

Just to review; avoid any further short term debt. Arrange a realistic payment schedule for that debt which you have. Explore campus sources for short term cash help. Survey the campus community for individual or group financial management support. This help could be a class, a group or individual counseling.

And one final Planet College Tip. When ever you get any money, paycheck, gift, tip, grant, loan or whatever put some portion of it into your own personal savings account. No matter what and no matter how small, even if it is only a dollar, whenever you get any income at all put something into a savings account. This simple habit will definitely help your own money security factor.

That's it. Get off the Paycheck loan wheel through a doable re-payment plan. Stay off the Paycheck Loan wheel by getting help. Finally, Whenever you get any money at all put some in a savings account.

You know how hard you work. So you know how hard money is to get. Now you know money is even harder to keep than it is to get.

The Paycheck Loan Wheel: The Solution Starts

The solution to the frustrating paycheck wheel habit starts with stop. Don't do it. No matter how desperate you are - and especially if you have several of these working at once- don't do another one.

Next step, remain in communication with those from whom you have borrowed money. There is nothing more annoying to a lender, and that is what these places are really, than not being able to contact people who owe them money. Going to them first when you can't make the payment will demonstrate your good faith in eventually paying the money back. It often helps to tell them your are a student, that you are working as well as going to school. If you have already missed a payment or even several it is wise to prepare a plan to repay the past due money. It is also helpful to bring a friend with you for support.

The Paycheck Loan Wheel Really Continues.

After having used and paid the paycheck service a few times some students realize they are consistenly coming up short. One solution often employed is to get another loan from another service. This short term but convenient solution soon compunds the initial problem, a funds shortage. At times some students have applied for and recieved several "payday" loans simultaneously. At Planet College the record we've heard of is eight. Maybe you've heard of more. Maybe you've had more.
There is one primary tactic to this costly downward spiral. Stop. Stop getting those expensive short term loans. Especially if you are using one to pay another.
This may seem far far easier said than done. Especialy if the lenders can call you at work or at home reminding you your payment is past due.

If you are in this frustrating position you probably need some help. Help beyond just don't do it.

The Paycheck Loan Wheel Continues.

This is the paycheck wheel continuing story. Now that the student has the hundred dollars from the pay day enterprise they may freely and happily spend it on anything they want. Often though this money is for and emergency like a car payment, cell phone bill or credit card payment. Whatever. It is promptly spent. Gone.
Now time goes by. Usually until the student's next payday. ( This is usually when such payday advances are due.) The student is paid, the business deposits the post-dated check and zoom that money is gone from that student's account. The student's account is now minus one hundred and sixteen dollars.
This might be a simple and even helpful, albeit expensive, transaction if it weren't for a few Planet College Basics. First new costs for students are constantly ocurring. Second most student workers think in terms of their entire pay being available. Thirdly, a significant amount of money disappearing from your checking account is really discouraging.
These effects from this seemingly simple and convenient transaction sometime lead a student to repeat the transaction in order to make up for the shortfall from their current earnings. This is part two of The Paycheck Wheel.

The Paycheck Loan Wheel.

Most students on Planet College are employed. Mostly part-time but employed nonetheless. Some times more than one employer. And the end result, the idea, the purpose is a paycheck. This check is supposed to cover at least most of the ongoing expenses related to life and school. It seems it almost never does.
And that is where the paycheck wheel begins.
Nationally for some times businesses have been flourishing which offer payday loans. The are usually storefronts and they often provide additional financial "services" such as cashing checks, sell money orders.
The pay day loans are usually in the form of a post-dated check. This is the procedure. The customer writes a check for a certain amount. They then date it for sometime in the future. Usually this date is on or after the customer's next payday. The total amount of the check includes a fee.
Practically it works this way. A student needs some quick funds, say $100.00. They then got to the payday loan company and there usually fill out some paperwork. The paper work includes their employer and other personal financial information. Once this paperwork is processed they can write the postdated check. The check will include the check cashing fee. In the state in which this is being written the fee is commonly $16.00. Thus the total of the check is $116.00.
The student then leaves the business with $100.00. Some time later, usually after the students next payday, the business cashes the check.

That is how the paycheck wheel starts.