I mentioned in another post recently about the savings that can be made by using short term loans, known as payday loans. I gave the example of an opportunity purchase that saves money being possible by this means, and I want to add that there is another classic instance of how you can save money by making use of a short term loan. We all tend to make errors from time to time, and the way banks behave, they seem to create situations that allow them to take your money out of your account for no real reason. One of the more classic ploys the banks do is to grab an opportunity to add extra charges. They can do this by clever accounting practices, such as if a bill is to be paid out automatically on a certain date, and there is just enough in the account to cover the bill, then they can add charges that are listed on the account before the bill is paid. This in turn means that there is no longer enough money to cover the bill. This, again, generates extra charges for not having sufficient funds, as well as probably causing an extra charge from the third party who was supposed to be paid, but who had the payment from you rejected. Everyone who has money makes money, leaving you as a poor consumer footing the bill. It is like legalized theft, really. So, it is worth avoiding that situation at all costs! This can be done by keeping yourself aware of your bank balance, and obtaining a fast loan if needed. You will end up in front, because the bank and other charges can often exceed the loan costs, as well as fouling up your credit rating.

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