Chances are you either have used a payday lender or know someone who has. Payday lenders will tell you that the fees they charge for a two week loan can be less costly than the fees paid for late charges and/or overdraft fees. There may be some truth to this, but in many cases the consumer is unable to repay the loan in two weeks. When this happens, the fees from the payday loan begin to add up fast.
The following scenario may not have happened to you, but I am fairly sure you know someone that has gone through something like this.
I was shocked recently to read the results of a recent study conducted by the Benefits Research Institute which reported that 36% of Americans have less than $1,000 saved for retirement.
Establishing an Emergency Fund is a critical financial management tool. An Emergency Fund provides cash to handle car repairs, medical bills, household repairs and other small financial emergencies
including loss of income. Having one month’s expenses in an Emergency Fund is a reasonable goal for most families.