Making sure that you are financially stable is no easy task. Many Americans find themselves in the difficult position of not having funds available to them when they need it. In fact, if there were an emergency that required $500, an amazing 63% of Americans would not have enough saved to take care of it. Unfortunately, these people are often pushed into a position where they have to try and solve the pressing cash flow problem.
One way people are getting by is to get a credit card, use it to pay the bill and then try and pay it off as soon as possible, so as not to incur large interest payments. However, not everyone can pay off the card quickly, and this leads to paying off the card in small amounts over a long period of time. In America today, the average household with revolving credit card debt pays a huge $904 in interest every year.
Another problem is that not everyone can get a credit card. There are many reasons that someone has no credit or bad credit, but no matter the reason, these folks in the U.S. have no recourse if there is a medical emergency, or they fall behind on bills or rent. This can lead to bad financial decisions due to desperation.
Many are getting short-term payday loans and this is a scary proposition, as they find themselves paying back astronomical amounts on top of the loan due to the loan company enforcing massive rates of interest. Payday loans are available in 36 states, and the average rate of interest charged is 391%! Some have been known to be even higher. Idaho lenders charge a massive 582% annual interest.
The only way to be sure you will not have to borrow money is to create an emergency fund, so you are secure financially. Get as much advice as you can from a professional, and start saving as soon as you can.
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