Living debt free life is a serious
challenge and not everyone survives it. Many people try all the harder to
achieve financial goals, but they give up in the middle of their journey. This
will not sound strange to you if you have gone through it. You make several
plans such as “transferring 10% of your gross salary to emergency cushion,” “building
up retirement funds,” “cutting down on discretionary expenses,” and the like, but
you collapse.
In fact, you end up taking out loans
for funding your expenses. It is not bad to apply for a loan if you have an
emergency and run out of money. Ultimately, small loans such as text loans and payday loans aim at
helping you tide over. However, they can pose a serious threat if you are not
careful with borrowing and continue to borrow to fund your recurring expenses. If
you do not want to fall into debt, you will have to survive a “No Spend Weekend”
challenge. Now is the time to know what this challenge includes.
This challenge has simply two roles:
you need to cut down on your discretionary expenses and you continue to pay
your bills. The former rule requires you not to use cash, credit cards and
debit cards for a weekend on shopping, dine outs, taxis etc. This will help you
save money that you can add to the reserve of your debt payments. The latter
requires you not to stop paying recurring expenses such as rent, credit card
bills, phone bills and utility expenses. This plan will help you be on top of
your debt payments.
However, chances are you fall short of
cash despite sticking to this challenge, but you will not likely need a very
big amount of money because you will have sufficient emergency cushion. In case
it falls short of a few pounds, you can apply for small funding sources from direct lenders.
Each lender follows different policy,
therefore make sure that you have done enough research beforehand. You will
likely pay higher interest rates in case of impaired credit standing, but advanced
research can mitigate the risk of falling in a predatory debt spiral. Some
lenders provide text loans with soft credit check and some provide with no credit check. The latter allows you
to borrow money without any credit check, but interest rates can be higher.
Text loans are helpful to fund any
small expense to avoid embarrassment and awkward situation. Though the amount
is small, the repayment can be larger. Make sure that you have the repayment
plan and that becomes possible when you run “No Spend Weekend” challenge time
to time. So, when are you going to run it?
Description: “No Spend Weekend” challenge will limit
you to small loans such as text loans. You will rely on them only in case of
emergency, not for your recurring expenses.
