What to do if your bank balance is near zero but it’s not quite on payday

Everyone has to wait for payday at some point in their life and it’s pretty easy to spend too much money and hit zero by the time it shows up.

The obvious answer is to budget better, but that doesn’t help when you look at the last few handfuls of cash with a whole week to go.

Personal finance expert and writer behind Be smart with your money, Andy Webb, has put together a list of dos and don’ts to get out of this predicament.

He says avoiding the temptation of payday loans is crucial and that managing overdrafts and credit cards can help avoid the zero balance cycle that becomes harder to break out of.



Reduce your expenses with a money challenge

Do not do that…

At the top of the list is what not to do and that includes some of the more tempting and “easy” options.

Don’t get a payday loan or a guarantor

In short, it’ll cost you a small fortune in interest charges and you’ll just have to pay them off plus an extra next month – leaving you in a worse situation than you find yourself in now.

Secured loans are also bad for your wallet and your credit rating, according to Andy who said, “Avoid these two types of loans even if you are desperate because there are cheaper alternatives. “

Do not use your overdraft

… unless he has 0% interest because these small amounts will add up.

Don’t put it on credit cards

Andy says, “It’s tempting to put things you can’t afford on a credit card or buy things through ‘easy’ credit from retailers like Very.

“But that doesn’t just delay dealing with the problem you add to it as well with additional interest and fees added to the amount you borrow.”

Do not use Buy now Pay later

Klarna, Laybuy and Clearpay are now on almost every shopping site and they are designed to delay payment so you can have the purchase now.

But if you think that you won’t have enough money left over the next month to cover these purchases and all the other new expenses that will arise, you are going to end up with money constantly owing month after month.



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Do this …

Fortunately, there are easier options for making money and earning a head start next month.

Develop a spending plan

Every personal finance expert, including BeCleverWithYourCash, will tell you that the best way to anticipate your spending is by knowing what you have and where it’s going, so get a plan that works within your means.

Use cash

When we use our phones or cards it is difficult to see how much we are spending, but with cash you will be able to see it in your purse or wallet and you will only be able to leave the house with what you need.

Reduce and shop

Andy says, “You might even consider a week or month without spending challenge where you only use the money for things like food and bills.”

Also trade-mark and cook from scratch rather than buying take-out.

Use what you already have

Take stock of what’s in your pantry and work your meals around the list to keep expenses to a minimum.

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