Paying Off Debt or Saving Money: Which Comes First?
Louisiana title loans can help you when faced with a financial emergency you cannot afford. However, how should you handle your finances daily? When online title loans are not an option, should you worry about paying off your debt or saving money for your emergency fund?
This guide from Cash Cow in Louisiana will explain whether you should prioritize paying off your debt or saving money. The answer will change depending on your circumstances. We will also review how to get approved for Louisiana title loans for emergency funds.
Should You Prioritize Paying Off Debt Or Saving Money?
People should worry first about paying off high-interest-rate debt before saving money. High interest rates can increase the money you owe over time, and waiting too long can cost you a lot of money in the long run. Some examples of debt that can come with high interest rates include credit cards, private student loans, and emergency cash loans.
However, those with some debt but not high-interest-rate debt can prioritize saving money. Having a collection of debt can help with your credit mix, and paying it off too early can lower your credit score. Prioritizing saving money can significantly impact your life and give you security should a financial emergency arise.
Top 5 Tips For Saving Money For Emergency Funds
Saving money can help you in a few different ways. It can help you afford your rising expenses due to inflation, pay for a financial goal like a new car, or put away money for retirement. One of the first things you should worry about when saving money is creating an emergency fund.
Financial emergencies and unforeseen economic circumstances can happen at any time, so it’s important to be prepared. We suggest borrowers save enough money in their emergency fund to afford 3-6 months' worth of living expenses.
The following are five save money tips in Louisiana:
1. Create A Budget
The first step to take when saving money is to create a budget. This allows you to write down your income and expenses on paper to determine if you make enough money to afford your lifestyle. You can also determine what excess money you can use for savings.
Once everything is written down like this, you can assess where you can cut costs to increase the amount of money you have for savings. It can also help you stay organized and know what expenses you need to afford so you’re not surprised when an automatic payment gets taken out.
If you have trouble following monthly payments on debts such as credit card debt and rent, getting organized could be the best first step towards saving money and financial stability.
2. Avoid Eating Out
After a busy workday, it can be exhausting to come home and cook dinner, leading many to pick up takeout or order food on a delivery app. However justifiable the decision may seem, it can cost you a lot of money that can go toward your savings. Spending over $20 on one meal when that money can go toward multiple meals is not smart money management.
Avoid eating out by buying groceries and meal planning for the week. You can buy a meal in bulk to make your money go further and cook meals on the weekend that you can eat throughout the week. Rather than eating out multiple times a month, you can save money by eating at home and using the excess money for your savings.
3. Cancel Unnecessary Subscriptions
In today’s society, with many people cutting the cord and needing subscriptions for daily luxuries, it can be hard to keep track of all your subscriptions. One of the easiest ways to save money is to write down all of your subscriptions and cancel any that you don’t need anymore.
While it may be nice to have Netflix, Hulu, Max, and Peacock, you probably don’t watch all four consistently enough to justify the cost. Choose one or two that you really enjoy, or cycle through them every couple of months to save money by avoiding paying over $10 for each. You can also take advantage of free trials to use a service without needing to pay every month.
4. Set Savings Goals
Just saving money for the sake of it is not sustainable. Without a goal in mind, it can be hard to remain motivated to save money rather than buy things that will give you a short-term benefit. By creating short—and long-term savings goals, you can provide structure to your savings and motivate yourself to keep going.
As mentioned previously, we suggest saving money for an emergency fund. Calculate how much it would cost you to live without income for six months and set that as your goal. You can also create goals like paying off your credit card debt or buying a new house.
Accomplishing this goal can have a positive psychological effect. After months of committing yourself to it, you can feel overwhelming joy when you achieve it. This can reduce your financial stress and increase your quality of life.
5. Automate Your Savings
It can sometimes be difficult to take money from your paycheck and immediately send it to a savings account. This is why it’s important to automate your savings. You can link your checking and savings accounts to have money transferred over regularly, such as after every paycheck.
Rather than having to do it yourself, you can set it up to have it happen automatically to avoid the temptation of not saving for one paycheck and spending the money on a luxury.
How Louisiana Title Loans Can Help You During Financial Emergencies
It can take a few months before you can save money in your emergency fund. In the meantime, emergency expenses can arise, and you may need help to afford them. If you cannot pay for your financial emergency out of pocket, Cash Cow in Louisiana can help with our title loans.
Louisiana title loans are secured loans that let you use your lien-free car title as collateral to borrow up to $1,400. You must have fully paid off your car to get approved for this emergency cash loan. You can apply for online title loans today and get approved in less than 30 minutes, allowing you to gain quick access to emergency funds you can use to pay for your urgent costs.
What Is The Title Loan Application Process?
Applying online for Louisiana title loans. It takes just a few minutes to get started, and our loan representatives can guide you through the process step-by-step. Borrowers only need their driver’s license, lien-free car title, and vehicle to get approved. Our speedy and efficient title loan application process lets you get emergency funds the same day you apply or the next business day.
The following are the steps involved in the title loan application process:
- Apply online with the contact form on our homepage
- Answer a phone call to discuss the title loan application process
- Gather your required items and head to a Louisiana store location
- Allow a loan agent to verify your required items and inspect your vehicle’s value
- Sign paperwork to complete the process
- Receive your emergency funds the same day you apply or the next business day
FAQs
What are some ways to cut costs?
The easiest way to cut costs is to create a budget and see what costs a lot that you don’t need. For example, you may buy coffee on the way to work every morning. Eliminate that expense by buying your own coffee you can make at home.
Can you borrow Louisiana title loans with bad credit?
We do not require good credit for our vehicle title loans because you use collateral to secure the loan. You can borrow bad credit title loans and don’t have to worry about borrowing money affecting your credit, as we do not report title loans to credit bureaus.
How does title loan repayment work?
Most borrowers repay their title loan as soon as possible to avoid paying interest. It usually takes a few weeks or months. You can pay as you save money or set up monthly payments.
Apply For Title Loans In Louisiana – Borrow Up To $1,400 Today!
Paying off your debt and saving money are both important, but creating an emergency fund can help when faced with urgent costs. If you haven’t built up your emergency fund yet, you can get financial help through Louisiana title loans at Cash Cow. Our stress-free, quick process lets you get approved the same day you apply, regardless of your credit score.
Don’t wait until you need financial help, and fill out our easy title loan form today. A loan representative will call you soon to discuss our requirements, the approval process, and how you can gain quick access to funds by the next business day.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.