CisterSpeak

$6500 Homebuyer Tax Credit for Current Homeowners

The extension on the popular $8,000 tax credit now carries an incentive for current homeowners too.  The $8,000 is still available to first time homebuyers but, now there is a reduced credit available to people who have owned their home for at least five years and are looking to purchase a new residence.   Maybe your family has outgrown your current house or your relocating to move closer to loved ones or a new job?

The move is basically there to welcome more high end home investors to the residential market.  During the initial incentive program created by the government, the sale of homes went up but only by a margin of what was expected with the $8,000 tax credit. Thus the introduction of the $6,500 tax credit by the federal government to current home owners now creates a more favorable market for both buyers and sellers.  This gives families more options if they choose to upgrade their household or their financial status changes they can now upgrade their style of living, thus the option of a new home.

Get A Handle on Your Money: Mint.com review

Apparently I've been sleeping under a very large rock and just recently heard about mint.com.  I'm literally kicking myself in not having found it months ago because it's exactly what I've been looking for.  Keeping track of your money habits is time consuming and much more difficult that it seems.  But finally...there is hope on the horizon.

This is one of the most effective personal budgeting programs I've come across to help you track your money coming in and going out.  And best of all its FREE!  I will admit though, I was extremely hesitant at first about signing on because you have to sign-up by logging into your banking institution(s). But after searching all over the web and researching about their security measures I finally felt comfortable enough to try it and I'm not regretting it one bit.

The Priceless Qualities of a Grant Writer

The biggest obstacle in owning a business or if you're still in the thinking process of starting one; is figuring out how your going to fund it.  No matter how big or how small your company is, financing is a key component of daily operations.  The big question is how to get it?  Of course everyone is familiar with getting loans and pulling money out of savings or other various venues; but grants are another way of acquiring some funding to build and expand your business.

The problem with grants however, is the process required in just being considered.  The paperwork is intensive, time sensitive and usually has strict restrictions and guidelines that must be followed.  If you're considering going with this approach thorough preparation is needed.  Although it is possible to do yourself, there are professionals who specialize in this area.

To get a better understanding of the process involved and some insider tips, we've reached out to president and C.E.O. of Connecting the Dots, Zipporah Daniels-Browne.  

To Join...Or Not To Join....

Whether you're a new couple just starting out or a well seasoned veteran team, keeping your finances well balanced is vital to the health of the relationship.  More than likely, you've heard or seen first hand that when allowed, money has the ability to pretty much destroy any relationship beyond recognition.  That being said, I believe that every couple needs to sit down and have completely open and honest discussion of their individual financial situations.  This way both of you have a clear understanding of exactly what you're dealing with.  Although this basically applies it all couples, it should be an absolute mandatory requirement for those just starting out.

Everyone has different reasons, beliefs, fears or opinions in regards to whether or not a couple should have joint or separate bank accounts; there simply is no right or wrong way to approach it.  The only requirement should be that you both talk it over and have SOME type of plan in action.  Failing to address how household finances will be handled going forward is just not an option.

Thinking Outside The Box

My brother's birthday came up and I was racking my brain thinking of what to get him.  I considered clothing, electronics and gift cards when suddenly I had an idea.  I contacted some members of the family and asked them if they'd be willing to contribute money towards paying a bill or two of his as a birthday gift?  Everyone agreed and thought it to be a wonderful gift idea.

With the economy the way that it is I figured giving a small gift of financial peace of mind would go a lot farther than clothing that would only fade with every wash.  After all, it's much easier for 6 of us to pay a $400 bill than one person.  Rather than simply giving him the money, we all sent in a payment directly to the vendor until the bill was satisfied.  My brother LOVED the gift idea as he just had a new bill come in that he was getting ready to pay.  The problem with giving cash is that sometimes things happen and the money never goes where its supposed to go.   Let's face it, emergencies happen.

Smart Credit - Get A Gas Card

Good credit and gasoline are both things you need; a gas card is a great way to get both.  Maintaining good credit in this rocky economy can be somewhat of a challenge.  If you think your credit is a little shaky and you want to reestablish it or you simply want to keep your score up; try using your credit wisely by buying a commodity that you are in need of and buy on a regular basis anyway (that's if you drive/own a car).  As opposed to simply buying something you want that will just put you further into debt.

Before you get that card though make sure you do a little research.  Lookout for banks with high interest rates as they will end up costing you more gas annually then you would normally spend.  Keep receipts for 30 days or get a copy of your statement to see how much you spent on gas in a month ( I typically spend about $115).  It's important that you keep that figure in mind when you order your card so that you already know how much to budget out for gas on a monthly basis.

Once you have your card, the first thing I would suggest you do is send out a payment of at least $25.00. Yes, BEFORE you even pump gas or use the card.  The thing is you want to keep the balance to at least 20% of the total limit otherwise your credit rating will take a hit.  So if you get a credit limit of $200 your balance should never go past $40.  If you have a $300 limit it should never go past $60 (you get the picture).  If you need to discipline yourself first or you've bounced checks in the past, get yourself a $25 dollar money order instead of writing a check. Some banks allow you to make your payments online, however, for the first payment send the payment via snail mail.  This gives you time to pump gas before the payment gets there, showing responsibility in borrowing money and repaying it back.  By sending the payment out in the mail it gives you a few days before it will post to the account showing a balance and then a payment being made in your activity log (credit card statement).

Just like any other credit card it is extremely important that you make your payments on a timely manner.   Again, If your lacking in the self-discipline department, then I STRONGLY ENCOURAGE you to use the money order method as the money comes out immediately and you don't have to worry about accidentally overdrawing your account.  You can also request to have a limit of $200 if you end up qualifying for a higher limit.  I personally like to do this to keep repayment manageable just in case I happen to max out the card (mistakes do happen).

Below I have a list of gas credit cards that I found on indexcreditcards.com.  Because I typically pump my gas at Citgo 95% of the time and Wawa the other 5%, I went with a Citgo card.  This is the only credit card that I have because I use a savings account for emergencies, so the balance transfer rate wasn't a factor for me when choosing a card since I only use it for gas and no other purchases what-so-ever.  Do not get suckered into making random purchases just to redeem points; as one day you can find yourself with $1,000 in credit card purchases just to redeem a $100 "gift."

 Gas Credit Cards

^{Gas station credit cards offering special rebates on gas purchases. (NOTE: Rates on gasoline credit cards change fairly regularly -- check the terms and conditions of any gas station credit cards you are interested in to be sure the interest rates shown here are accurate.)}

• Discover® Open Road® Card (formerly Discover Gas Card) - Gas Rebate Offer: Discover gas credit card allows you to earn a full 5% Cashback Bonus on your first $100 in gas and automotive maintenance purchases each month, and an up to 1% Cashback Bonus on all other purchases. Ongoing APR: As low as 10.99%, as high as 18.99% variable rate*. Introductory APR: 0% for the first 6 billing cycles. Balance Transfer Rate: 0% for 12 billing cycles, then same as ongoing. Annual Fee: None. (terms and conditions.) 


• Blue Cash® from American Express® - Gas Rebate Offer: Earn up to 5% cash back on gas purchases -- a full 1% rebate at gas stations, supermarkets and drug stores for the first $6500 of total yearly purchases, and a full 5% cash back on all gas station, supermarket and drug store purchases after that. Also, get a full 0.5% rebate on other purchases for the first $6500 of total yearly purchases, and a full 1.5% on other purchases after that. Ongoing APR: 11.24%, or 14.24%, or 17.24% variable rate*. Introductory APR: 0% for up to 12 billing cycles. Balance Transfer Rate: 2.99% for the first 12 months, then same as standard rate. Annual Fee: None. (terms and conditions.)
  


•  Costco True Earnings® Card from American Express - Gas Rebate Offer: Earn 3% cash back on gas purchases and restaurant purchases, 2% cash back on travel purchases, and 1% cash back everywhere else. Ongoing APR: 13.24% variable rate*. Introductory APR: 0% for the first 3 billing cycles. Balance Transfer Rate: 1.99% for six months. Annual Fee: None with paid Costco membership. (terms and conditions.)
  


• BP Visa Card - Gas Rebate Offer: BP credit card allows you to earn a 5% rebate when you use the card for gasoline at BP gas stations and Amoco gas stations, a 2% rebate on travel and dining purchases, and 1% on any other purchases. Redeem for BP gift cards or cash. Ongoing APR: 12.99%, or 19.99% variable rate*. Introductory APR: Same as ongoing. Balance Transfer Rate: 0% for 6 billing cycles, then same as ongoing. Annual Fee: None. (terms and conditions.)
  


• Casey's Platinum MasterCard - Gas Rebate Offer: Casey's General Store gas station credit card allows you to earn 3% in rebates at Casey's locations, 1% everywhere else. Ongoing APR: 11.99%, or 14.99%, or 17.99% variable rate*. Introductory APR: Same as ongoing. Balance Transfer Rate: 0% for 6 billing cycles, then same as ongoing. Annual Fee: None. (click for all terms and conditions.) < br>


• Chevron Texaco Visa - Gas Rebate Offer: Chevron credit card allows you to earn a 10-cents-per-gallon fuel credit rebate on gas purchases at Chevron and Texaco stations, a 3% fuel credit rebate on any other purchases at Chevron / Texaco, and a 1% fuel credit rebate on all other purchases. Ongoing APR: 13.49% or 17.49% or 20.49% variable rate*. Introductory APR: Same as standard rate. Balance Transfer Rate: Same as standard rate. Annual Fee: None. (click for all terms and conditions.)
  


•  Citgo MasterCard Credit Card - Gas Rebate Offer: Citgo credit card allows you to earn a 4% rebate on Citgo gas purchases and up to 1% elsewhere. Ongoing APR: 11.24% or 15.24% variable rate*. Introductory APR: Same as ongoing. Balance Transfer Rate: 2.99% for 6 months, then same as ongoing. Annual Fee: None. (click for all terms and conditions.)
  


•  Clark Platinum MasterCard - Gas Rebate Offer: Clark gasoline credit card allows you to earn between 3% and 8% rebates at Clark gas stations depending on your overall monthly charges, 1% everywhere else. Ongoing APR: 16.24%, or 18.24%, or 20.24% variable rate*. Introductory APR: Same as ongoing. Balance Transfer Rate: 0% for 6 billing cycles, then same as ongoing. Annual Fee: None. (click for all terms and conditions.)
  


•  ExxonMobil MasterCard - Gas Rebate Offer: Exxon Mobil credit card allows you to earn 15-cents-per-gallon rebates on gas credit card purchases at Exxon gas stations and Mobil gas stations, and up to 2% on other purchases. Ongoing APR: 11.24% or 15.24% variable rate*. Introductory APR: 0% for 6 billing cycles. Balance Transfer Rate: 0% for 6 billing cycles, then same as ongoing. Annual Fee: None. First National Bank Omaha Gas Rewards Visa - Gas Rebate Offer: Earn a 3% rebate on gas purchases and 1% back on all other purchases. Ongoing APR: 13.99%, or 15.99%, or 17.99% variable rate*. Introductory APR: 0% for the first 6 billing cycles. Balance Transfer Rate: Same as standard rate. Annual Fee: None.
  


• Gulf Platinum MasterCard - Gas Rebate Offer: Gulf credit card allows you to earn 3% rebates on gasoline credit card purchases at Gulf gas stations, 1% everywhere else. Ongoing APR: 11.99%, or 13.99%, or 17.99% variable rate*. Introductory APR: Same as ongoing. Balance Transfer Rate: 0% for 6 billing cycles, then same as ongoing. Annual Fee: None.
  


• Hess Visa Credit Card - HessGas Rebate Offer: Hess credit card allows you to earn a 5% rebate on all gasoline purchases at Hess, Hess Express and Wilco Hess gas stations; earn a full 1% cash back on all other purchases. Ongoing APR: 13.99%, or 15.99%, or 19.99% variable rate*. Introductory APR: Same as ongoing. Balance Transfer Rate: 0% for 6 billing cycles, then same as ongoing. Annual Fee: None.
  


•  Irving Oil Visa Credit Card - Gas Rebate Offer: Earn 3 points per dollar on Irving Oil products and 1 point per dollar everywhere else. Ongoing APR: 10.99%, or 14.99%, or 18.99% variable rate*. Introductory APR: Same as ongoing. Balance Transfer Rate: 0% for 6 billing cycles, then same as ongoing. Annual Fee: None.
  


• LUKOIL Platinum MasterCard - Gas Rebate Offer: Lukoil credit card allows you to earn 4% on gas credit card purchases at Lukoil gas stations and Getty gas stations, 1% everywhere else. Ongoing APR: 16.99%, or 18.99%, or 21.99% variable rate*. Introductory APR: Same as ongoing. Balance Transfer Rate: 0% for 6 billing cycles, then same as ongoing. Annual Fee: None.
  


• Marathon Platinum MasterCard - Gas Rebate: Offer: Marathon credit card allows you to earn 5% on gasoline purchases at Marathon gas stations; earn a full 1% cash back on all other purchases. Ongoing APR: 13.99%, or 15.99%, or 18.99% variable rate*. Introductory APR: Same as ongoing. Balance Transfer Rate: 0% for 6 billing cycles, then same as ongoing. Annual Fee: None.
  


•  Phillips 66 - Conoco - 76 MasterCard Credit Card - Gas Rebate Offer: Conoco credit card offers a 4% rebate on gas purchases at Conoco, Phillips 66 and 76 gas stations, and up to 1% back on other purchases. Ongoing APR: 11.24% or 15.24% variable rate*. Introductory APR: Same as ongoing. Balance Transfer Rate: 0% for 6 billing cycles, then same as ongoing. Annual Fee: None.
  


•  RaceTrac Platinum MasterCard - Gas Rebate Offer: RaceTrac gas card allows you to earn 3% on gasoline credit card purchases at RaceTrac gas stations, 1% everywhere else. Ongoing APR: 11.99%, or 13.99%, or 15.99% variable rate*. Introductory APR: Same as ongoing. Balance Transfer Rate: 0% for 6 billing cycles, then same as ongoing. Annual Fee: None.
  


•  RaceWay Platinum MasterCard - Gas Rebate Offer: RaceWay gas card allows you to earn 3% on gasoline credit card purchases at RaceWay gas stations, 1% everywhere else. Ongoing APR: 11.99%, or 13.99%, or 15.99% variable rate*. Introductory APR: Same as ongoing. Balance Transfer Rate: 0% for 6 billing cycles, then same as ongoing. Annual Fee: None.


• Sheetz MasterCard - Gas Rebate Offer: Sheetz credit card allows you to earn 3% cash back on gas and other purchases at Sheetz locations; earn 1% cash back on other purchases. Ongoing APR: 13.99%, or 15.99%, or 19.99% variable rate*. Introductory APR: Same as ongoing. Balance Transfer Rate: 0% for 6 billing cycles, then same as ongoing. Annual Fee: None.
  


•  Shell MasterCard - Gas Rebate Offer: Shell credit card allows you to earn a 5% rebate on Shell gas card purchases, and a 1% Shell gas rebate everywhere else you use the Shell credit card. Rebates are automatically redeemed against future Shell gas purchases with the card. Ongoing APR: 11.24% variable rate*. Introductory APR: Same as ongoing. Balance Transfer Rate: 0% for 6 months, then same as ongoing. Annual Fee: None.
  


•  Sinclair Platinum MasterCard - Gas Rebate Offer: Sinclair credit card allows you to earn a 5% rebate on Sinclair gas purchases, and a full 1% rebate everywhere else you use the card. Ongoing APR: 15.49%, or 17.49%, or 20.49% variable rate*. Introductory APR: Same as ongoing. Balance Transfer Rate: 0% for 6 months, then same as ongoing. Annual Fee: None.
  


•  Speedway SuperAmerica MasterCard - Gas Rebate Offer: Speedway credit card allows you to earn 40 Speedy Rewards points per dollar on purchases at Speedway and SuperAmerica gas stations, and 10 points per dollar on purchases everywhere else. Redeem points for discounts on gas, food or merchandise rewards. Ongoing APR: 13.99%, or 15.99%, or 18.99% variable rate*. Introductory APR: Same as ongoing. Balance Transfer Rate: 0% for 6 billing cycles, then same as ongoing. Annual Fee: None.
  


•  Sunoco MasterCard - Gas Rebate Offer: Sunoco credit card allows you to earn a full 4% rebate on Sunoco gas card purchases, and up to 1% everywhere else you use the Sunoco credit card. Ongoing APR: 11.24% or 15.24% variable rate*. Introductory APR: Same as ongoing. Balance Transfer Rate: 0% for 6 months, then same as ongoing. Annual Fee: None.
  


•  Valero Credit Cards - (NOTE: These credit cards are only for use at Valero stations and are NOT Visa, MasterCard, American Express or Discover cards that can be used everywhere.) - Gas Rebate Offer: No gas rebates, just revolving credit. Ongoing APR: 15.99%. Introductory APR: Same as regular rate. Balance Transfer Rate: No balance transfers. Annual Fee: None.
  


• Wawa Visa - Gas Rebate Offer: Wawa credit card allows you to earn 3% cash back on gas and other purchases at Wawa and 1% cash back everywhere else. Ongoing APR: 13.99%, or 15.99%, or 19.99% variable rate*. Introductory APR: Same as ongoing. Balance Transfer Rate: 0% for 6 billing cycles, then same as ongoing. Annual Fee: None.  

* variable rate = credit card interest rate changes in line with federal interest rates or other rate index; fixed rate = credit card rate stays the same regardless of changes in federal rates, but still may be changed by credit card issuer in the future.

How To Remove a Charge Off From Your Credit Report

If you've been ignoring collection letters and phone calls from creditor(s) chances are you may have a charge off on your credit report.  A write off or charge off, is an accounting procedure that happens when a creditor has not received payment on the account in 180 days (6 months).  Contrary to popular belief it does not mean that you no longer owe the debt; it's just a way for the creditor to report an un-collectible debt and report the loss.  Basically they suffer because they have lost money on the loan but also have an upside because they can turn around and deduct any charged off debts and thus end up paying less taxes.

We will (for the sake of this article) assume that you are reading this because you have one on your report.  Please be aware that even having one can and most likely will, seriously impair your score and cause you A WHOLE LOT OF HEARTACHE; so it's imperative that you get on your grind to try to fix it asap.  Otherwise, it will stay on your report for 7 years from the day of the initially missed payment that caused the delinquency on the account. 

Another thing to realize is that a single charged off account can come back and bite you, hard, in the fact that it can create more than one negative mark on your credit history.  This is because they can be bought and sold to different collection agencies multiple times as each one tries and fails to recover the monies owed.  However, you can fight this by staying on top of your credit report.  If you see multiple listings for the same account (i.e. under the original lender then again with the collection agency) Dispute it with the credit bureaus then file a complaint with the Federal Trade Commission.

OK so now that we've established that you have a charge off, how do you fix it?  Well from my personal experience as well as research this is what I've found:

Can You Pay My Bills?

It's been my experience that dealing with money can either make or break a relationship.  Money matters can come at any time and can be extremely destructive if not handled correctly.  I find that most times its not easy to take 'equal responsibility' in paying the bills in the household when there isn't 'equal income' coming into the house (and more so when salary differences are really big).  The spouse or partner who earns less may feel overwhelmed or not contributing as much.  Then again the spouse who makes more shouldn't also have to carry everything on their shoulders for their successes either.  That is why it is vitally important to sit down and discuss how bills and mortgages are going to be paid.  Some folks pick certain bills to pay in the house and others split the bills how they see fit (which doesn't always work out too well).  For example, splitting things 50/50 in a household can be unfair to the lesser earner.  But on the same note, taking on a higher burden just because you make more can lead to feelings of resentment in the long run.  And for some of the ladies out there that rely on men to do everything for them, trust me that can get real old, real quick.

Suzanne Orman had a great suggestion for keeping household money matters in their proper balance.  Each spouse or partner should pay an equal percent towards the bills.  This way at the end of the day each earner is paying the exact same percentage amount towards the bills and common household needs; which keeps everything in fairness and amicable for all parties.

Example:
Dean and Jessica Alexander have a combined household income of $98,000.
Dean's Annual Salary                $60,000
Jessica's Annual Salary             $38,000

Rather that working with pretax figures, I find it easier and more of an eye opener in dealing with the actual income that is coming into the home (with taxes and health insurance etc already taken out).

Dean's monthly take home pay:          $3,160  (1580 biweekly)
Jessica's monthly take home pay:       $2,122  (1061 biweekly)
Household monthly income:             $5,282   (2641 biweekly)

Mortage:                                           $1,700  (1,700/5282 = .322 = 32.2%)
Bills (Cars,utilities,food, etc):            $1,524  (1524/5282  = .289 = 28.9%)
Savings:                                            $528     (528/5282    = .10   = 10.0%)
Childcare:                                         $1,000  (1,000/5282 = .189 = 18.9%)

                      DEAN                                                            JESSICA
Mortgage =  $3,160 x 32.2% = $1,017.52                   $2,122 x 32.2% = $683.28
Bills         = $3,160 x 28.9% = $913.24                      $2,122 x 28.9% = $613.26
Savings   =  $3,160  x 10.0% = $316.00                      $2,122 x 10.0% = $212.00
Childcare = $3,160 x  18.9% = $597.24                      $2,122 x 18.9% = $401.05

Dean's Total Contribution         =  $2,844.00        

Jessica's Total  Contribution     = $1,909.59

Below is the remaining monies for both parties.  This is money that you can put into your individual checking accounts as the main bills have all been taken care of and savings has been established, so in case of an emergency, the money allocated for savings is there and available for use without having to panic and/or scrimp.  All personal spending and purchases can come out of your individual accounts.

DEAN                                       JESSICA

3,160 - 2,844 = $316.00     2,122 - 1,910 = $212.41                                 

I would suggest that large purchases (anything over 100 bucks) be discussed by both parties even though you have separate accounts.  Ladies we know can make decisions in haste (especially when there is a good boot sale) and talking it over keeps you both in the same mindset.  It also works in reverse when he is trying to buy a new TV or riding lawnmower...

Time To Pull That Credit

I want to take this time to remind everyone of the importance of checking your credit report and your score.  Monitoring your credit is one habit that you NEED to have.  I personally would recommend that you check your reports every quarter (4 months) on an annual basis.  This is necessary because errors do happen and it's one of the best ways to prevent and detect identity theft.

Equifax, Trans union and Experian are required to provide consumers with a free report every twelve months.  Do keep in mind that while those reports are free your credit scores are not and you will have to pay extra for them.  However, it is not very expensive (around $8 or so each).  To obtain a fee copy of your report go to AnnualCreditReport.com.

On another note - The weak state of the economy has given a huge boost to many of those 'credit repair businesses' promising to clean up or fix your credit.  People are desperate and in distress because the heightened requirements for getting a loan; making them perfects targets for credit scammers.   Most of these companies charge you a hefty fee up front before any services have been provided.  Please Note:  THAT IS ILLEGAL!  You can go to the Federal Trade Commission website to learn your rights as a consumer and what you can do to protect yourself.  They have a story on companies such as these which you can read here.

The 411 on Pay Day Loans

You see these advertisements everywhere, 'Do you need money now?','Get a loan until pay day, 'Outta cash? etc' --- You KNOW(without a doubt)  its a scam, BUT desperation often times call for desperate measures...

Pay Day loans do have very little (minuscule, damn near invisible really) up-sides, everything else about them is all downhill.  Their entire design is not to help you through a tough financial bind, they are solely to make money from you.  The fee for borrowing the money is ridiculous and the Annual Percentage Rate on the loan is Astronomical, ranging anywhere from 300-800% and can even go higher.

HOW THEY WORK

Most people usually require a PD Loan when they need a little bit of cash for short period of time.To qualify for one all you need is a checking account and a j.o.b.  The lender will ask you for proof of employment, bank info, identification and lastly a post dated check for the amount you borrowed PLUS the loan fee. 

The loan fees will cost you a pretty penny too, as they can range anywhere from $15-$30 for every $100 you borrow.  Add to that the annual interest rates are also astronomical with rates ranging anywhere from 360-1000%!!!  Loans are typically between $100-$1500  and the check is usually post-dated for two weeks from your borrowed date (or your very next paycheck.)

AND HERE'S THE TRAP

If you don't pay the loan back on the date specified you do have the option of rolling over the loan and its fees until your next paycheck.  Most people who get payday loans are already in a serious financial crisis, so its all but expected for them to fail paying for the loan on the due date and you extend it hoping to pay it off on your next paycheck.  And now the cycle begins.....

Let's say you borrow $300. At $25 per each $100 you borrow your fee for borrowing the money is $75, so now you've borrowed $375.  If you miss or bounce that repayment amount on the due date, they will most likely charge you $35 AND your bank will charge you a bounce check fee on top of that!  So that's another $30 tacked on so now your at $445 for that same $300 you borrowed.  Plus, since you didn't pay it back on time they are going to charge you another borrowing fee of $75 until your next paycheck so your now at $520.  If you don't bounce your check but keep needing to extend the loan they will keep tacking on a fee for borrowing the money. 

So still following the above scenario - you had no money to begin with and need to borrow $300;  then with fees and everything that $300 now becomes $520.  Meaning you had no money to start with but now your even further in the hole.  So rather then getting paid and having to pay your creditor $300 you have do dig even deeper in your struggling pocket and pay $520.  But if you don't have that $520 and you need to extend just until your next paycheck-  tack on another $75 and your at $595 in just one short month.

ALTERNATIVE SOLUTIONS

• Borrowing from family usually means you don't need to pay back with interest (or the interest will be substantially less.)

• If family doesn't have it ask your creditor if you can make the smallest payment possible until you get on your feet or if you can defer that payment for the month and tack it to the end of the loan.
• Ask your employer if you can get an early advance on your pay.

  If its a dire emergency and you really,really need the money,  please make sure you do everything humanly possible to pay that loan back on the very first repayment period.  However the best and most recommended method to getting out of this financial abyss, is to NEVER get into it in the first place.