According to a recent survey, slightly more than half of young women (ages 18-30) have to borrow money to have enough cash to make it to the end of the month. There are many potential causes behind this, but the improved economy may be helping with these problems. More consistent work and more hours available to employees may be improving this condition.
Many young women (and men, too) borrowed from families or used a credit cards to cover their expenses. About 10% of young people said they had used a payday loan company, although for parents under 30 years old, this number jumped to 25%.
Why Are Young Women Borrowing So Much Money?
In recent years there has been an increase in the number of under-40s, and renters too, who are struggling to make ends meet. Many are now relying on credit cards or payday lending to handle essential expenses when they are short of cash.
The biggest concern is that they may be trapping themselves into a cycle of debt that is hard to get out of. With high fees, payday loans can quickly become very expensive. They should only be used for emergency situations like a medical bill but also only when the borrower is sure they can pay back the loan on their next paycheck. Rolling over the loan is not a good plan.
Many young people believe they will be in debt when they are 40, so avoiding high-cost loans of any kind is wise whenever possible. Even installment loans that have lower interest and longer payment terms can have over 300% interest over the life of the loan.
Tips to Save Money for Young Women
These tips can help you save money so that you don’t have to borrow from anyone in your time of need.
Create a budget
It is highly recommended to all young people that they create a budget and really monitor their expenses.
Reduce unnecessary expenses
Reducing unneeded expenses, like eating out, is an easy way to improve your cash flow and lower the strain on you.
Pay off high-interest debt
Paying off high-interest debt first is a proven strategy to save money, as with time, the interest will increase, and you will have to pay huge money later.
Control your fixed expenses
Take charge of your fixed expenses like rent, EMI, insurance premiums, etc., and prioritize their expenses based on their importance so that you have the luxury to delay one of the payments in case you need money for any emergency.
Make use of insurance or benefit schemes
You can either buy insurance or enroll yourself in various government benefit programs, such as retirement, widow, etc., and use them to cover an emergency expense later.
What you need to understand is everything starts with creating and maintaining a budget so you know exactly where you spend money and how much.
Follow these tips, and you will never have to ask anyone for money. However, if you still find yourself in an emergency situation with no other way to handle it, then consider a payday loan at one of the best referral sources, CashInaSnap. We are available at your service 24/7, 365 days a year.