Replace Short-Term Loans with these Finance Tips

by Mike on September 5, 2016

Replace Short-Term Loans with these Finance Tips

Short term loans or payday loans, as they are often referred to, have their place in the financial landscape but should be used only as a last resort and only for small amounts. With smart budgeting, vigorous benefit research and these finance tips, hopefully you can avoid the major pitfalls of short term loans.

In instances where an emergency pops up that requires cash, look to benefit advances or specialised low or no interest loans through non-profits. Outside of emergency cash injections, below are ways to improve your finances and stay away from borrowing.

Budget & Money Management

Money management seems like a term used by corporations, yet it is something that astute households use on a daily basis to avoid going into debt. The best money management is used in concert with a budget. If you live on a low income or very low income you may think it is not worth the effort, yet it is even more important to understand where every single dollar is spent.

Audit Your Money

Your first task in setting your finances in order should be to assess your income and expenses over the course of a month to determine exactly how much income you have from all sources and where it is spent. This step ensures you know how to allocate your money in a budget.

Analyze Expenses

If you are on a low income, you more than likely understand your income sources very well. However, by keeping a record of every dollar spent in a month may be able to show you exactly where you are wasting money, spending frivolously and where your spending priorities are. If you learn you are spending $100 a month on fast food of a monthly budget of $1000, you may realize that 10% of your income could be better spent on cooking at home. $100 could provide meals for seven to 10 days.

Set Your Budget

Setting a budget is something like a goal you set every month for your finances. By establishing a budget based on actual figures from an audit you can understand that you need for example 70% of your income just to cover rent, utilities and transportation, leaving only 30% for food, clothing and all other expenses. This process can also show you exactly where you might want to reach out for extra help from government sources or local non-profit organizations. Review your expenses and budget monthly.

Maximize Your Benefits

If you are already receiving benefits but have had a significant change in circumstances, you may qualify for additional subsidies and assistance. If you are dealing with financial hardship, getting the right help can be the difference between getting ahead and falling into a worst situation.


Find out if you qualify for housing benefits the government provides numerous programs to help with rent and mortgage repayments. There are also programs that help pay for utility bills and other important living needs expenses. All these may help further reduce your expenses, freeing up much needed budgeting room for emergencies, self-help educational training and other needs to further your financial freedom.


If you take an active approach to your finances, learning exactly where your money is spent and how to make it stretch further, you can avoid short term loans altogether and their ridiculous annual percentage rates.


***Image thanks to Danny Ayers***




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