Payday Loans: A Short-Term Fix with Long-Term Consequences

Payday loans are often advertised as a quick and easy solution to unexpected financial emergencies. But what they don't advertise is the high cost and potential debt trap these loans can create. Let's delve into the world of payday loans, exploring how they work, the risks involved, and alternative solutions to consider.

What is a Payday Loans?

A payday loan is a small-dollar, short-term loan, typically for $500 or less. You repay the loan, plus high interest and fees, on your next payday. The ease of access, with minimal credit checks required, can be tempting. However, this convenience comes at a steep price.

Understanding the Costs

Payday loans might seem like a quick solution on the surface, but the true cost can be hidden beneath a layer of seemingly simple fees. Let's peel back the layers and uncover the high interest rates and fees associated with payday loans.

Interest Rates: A Deceptive Number

Payday lenders typically don't advertise interest rates in the traditional sense. Instead, they charge a flat fee, often ranging from $10 to $30 for every $100 borrowed. While this might seem manageable, here's the catch:

For example, a $15 fee on a $100, two-week loan translates to an APR of almost 400%. This means you'd be paying back $115 for a $100 loan – a significant cost for borrowing for such a short period.

Fees on Top of Fees: A Double Whammy

Beyond the sky-high interest rate, payday loans often tack on additional fees:

These additional fees can further inflate the overall cost of the loan, making it even harder to repay.

How Payday Loans Can Trap You

Payday loans might seem like a life raft during a financial storm, but they can quickly turn into quicksand, pulling you deeper into debt. Let's explore the vicious cycle that payday loans can create and how they can trap borrowers for months, even years.

The Slippery Slope of Due Dates

The issue lies in the short repayment period of payday loans, typically two weeks. Many borrowers struggle to repay the entire loan amount plus fees by their next payday. This creates a difficult choice:

The Fee Trap:

Rolling over a loan means those high fees are added to the existing loan amount. This creates a snowball effect, with the debt growing larger with each renewal. Here's how it traps borrowers:

The Cycle Continues:

With limited funds after paying the fees, essential expenses become a burden. Borrowers are then tempted to take out another payday loan just to make ends meet, perpetuating the cycle.

Breaking Free is Difficult:

The longer someone is trapped in the payday loan cycle, the harder it is to break free. They may end up:

Remember: Payday loans are designed for short-term emergencies, not long-term solutions. The cycle of fees and rollovers can quickly turn a small loan into a significant financial burden. Explore alternative options before resorting to payday loans and avoid getting sucked into the quicksand of debt.

Alternatives to Payday Loans

Payday loans might seem like a quick fix for unexpected financial woes, but as we've seen, they can lead you down a dangerous debt spiral. Thankfully, there are safer alternatives available to help you navigate financial rough waters. Let's explore some options that won't leave you feeling shipwrecked.

Negotiating with Creditors: A Direct Approach

Cash Advances: A Familiar, But Not Ideal Option

Peer-to-Peer Lending: Borrowing from the Crowd

Credit Union Loans: A Helping Hand from Your Community

Local Assistance Programs: A Lifeline in Times of Need

Remember, these are just a few options. The best alternative depends on your specific situation. Talking to a financial advisor or credit counselor can help you explore the best course of action for your financial well-being.

Essential Considerations Before Diving into Payday Loans

Here are some essential considerations to make before you even think about borrowing from a payday lender:

  1. Can You Afford the Repayment?
    • Scrutinize Your Budget: Honestly assess your current income and expenses. Can you realistically afford the loan repayment on top of your regular bills?
    • Short Repayment Period: Remember, payday loans typically need to be repaid within two weeks. Missing a payment can trigger a cycle of fees and rollovers, making the situation worse.
  2. Explore All Other Options:
    • Are There Alternatives?: Exhaust all other possibilities before resorting to a payday loan. Consider negotiating with creditors, seeking help from local assistance programs, or using a credit card cash advance (though ideally with a lower interest rate).
  3. Understand the True Costs:
    • Look Beyond the Headline Numbers: Don't be fooled by the seemingly small flat fees advertised by payday lenders. Calculate the APR to understand the true interest rate you'll be paying. It can be astronomical compared to other loan options.
  4. The Risk of the Debt Trap:
    • The Cycle Starts Quickly: Payday loans are designed to be addictive. The high fees and short repayment terms can easily trap you in a cycle of debt that's difficult to escape.
  5. The Impact on Your Credit Score:
    • Missed Payments Hurt Your Score: Missing payments on a payday loan can negatively impact your credit score, making it harder to access affordable loans in the future.
  6. Consider Long-Term Solutions:
    • Focus on Long-Term Stability: Instead of a quick fix, explore ways to build a financial safety net. This could involve budgeting more effectively, increasing your income, or creating an emergency fund.

Remember: Payday loans should be a last resort. By carefully considering these factors before you borrow, you can avoid the financial quicksand of payday loan debt and make informed decisions for your financial well-being.

Emergency Aid When You Need It Most

Facing a financial emergency can feel overwhelming. Bills pile up, and the pressure to find a solution can be intense. Before resorting to high-cost payday loans, consider the potential lifelines offered by local assistance programs. These programs can provide much-needed temporary relief during difficult times.

What Kind of Help Can You Get?

Local assistance programs come in various forms, offering a safety net for essential needs. Here are some examples:

Who is Eligible?

Eligibility requirements vary depending on the program and the organization offering it. However, programs typically prioritize low-income individuals and families facing hardship.

Finding Local Assistance:

There are several ways to find local assistance programs in your area:

  1. 211: Dial 211 from any phone to connect with a free and confidential service that can refer you to local assistance programs in your area. You can also visit their website at http://www.211.org/ for more information.
  2. Non-Profit Organizations: Search online for non-profit organizations in your area that focus on helping low-income individuals and families. Many offer emergency assistance programs.
  3. Government Agencies: Local and state government agencies often offer assistance programs for residents. Check their websites or call their information lines.
  4. Religious Organizations: Some religious organizations offer food pantries or other forms of emergency assistance to their communities.

The Benefits of Local Assistance:

Seeking help from local assistance programs offers numerous benefits:

Remember: Don't be ashamed to seek help. Local assistance programs exist to support individuals and families facing financial hardship. By exploring these options, you can find a lifeline during difficult times and avoid the predatory traps of payday loans.

Frequently Asked Questions
What is a payday loan?

A payday loan is a small-dollar, short-term loan, typically for $500 or less, that needs to be repaid with high interest and fees on your next payday. While they seem convenient, the high cost and potential debt trap can outweigh the temporary benefit.

How much does a payday loan cost?

Payday loan costs are deceptively high. While lenders advertise flat fees, these translate to Annual Percentage Rates (APR) that can reach a staggering 400% or more. This means a small loan can snowball into a significant debt burden quickly.

Can't I just extend the repayment period if I can't afford to pay it back on payday?

Many borrowers fall into this trap. Extending, or rolling over, the loan incurs additional fees, adding to the overall cost and making it even harder to repay the debt.

What are some alternatives to payday loans?

Before resorting to payday loans, explore safer options like negotiating with creditors, using credit card cash advances (ideally with a lower interest rate), or seeking help from peer-to-peer lending platforms or credit unions that offer lower rates and more flexible terms. Local assistance programs can also provide emergency aid for rent, utilities, or groceries.

How can I avoid the payday loan debt trap?

Carefully consider all options before borrowing. Create a budget to understand your income and expenses. If you're struggling financially, seek help from a credit counselor or financial advisor to explore solutions for long-term financial stability.

What are the signs I'm trapped in payday loan debt?

If you're constantly borrowing new loans to repay old ones, missing payments on other bills due to payday loan obligations, or your credit score is suffering, these are all signs of being stuck in the payday loan debt trap.

How can I get out of payday loan debt?

There are ways out. Consider consolidating your payday loans into a lower-interest loan. Focus on budgeting and prioritize repaying the debt. Talk to a credit counselor for personalized guidance on managing your debt and rebuilding your credit score.

Are payday loans legal?

Payday loans are legal in many areas, but regulations vary by location. Always check the laws in your area to understand the terms and restrictions before borrowing.

What can I do if I'm being harassed by a payday lender?

If a payday lender is harassing you with aggressive collection tactics, report them to your state Attorney General's office or the Consumer Financial Protection Bureau (CFPB).

Where can I find more information about payday loans?

Government resources like the CFPB website (https://www.consumerfinance.gov/) offer valuable information on payday loans and consumer rights.

Viva Payday Loans Review: A Beginner's Guide to Understanding the Costs and Consequences

Viva Payday Loans, though not directly offered by Viva Finance, might be a term you encounter while searching for fast cash. These loans, often found on loan marketplaces, are short-term advances with fast approval but come with high-interest rates and fees. Before considering a Viva Payday Loan, it's crucial to understand the potential drawbacks and explore alternative solutions to make an informed decision.

Pros and Cons of Viva Payday Loans

Viva Payday Loans, while tempting for their speed, come with a unique set of advantages and disadvantages. Let's peel back the layers and unveil the truth behind these short-term advances.

Pros:

Cons:

Loan Qualifications

While Viva Finance itself doesn't offer payday loans directly, understanding the qualifications for payday loans in general is essential before you proceed with a loan marketplace offering them. Here's a breakdown of what you typically need to qualify for a Viva Payday Loan (or similar payday loans):

Minimum Requirements:

  1. Be at Least 18 Years Old: You must be of legal age to enter into a contract.
  2. Have a Valid Source of Income: Steady and verifiable income is crucial, as lenders need to assess your ability to repay the loan.
  3. Have a Checking Account: Most payday lenders require a valid checking account for direct deposit of the loan amount and for automated withdrawals for repayment.
  4. Valid Government Issued ID: Proof of identity is a standard requirement.

Additional Considerations:

Applying for Viva Payday Loans

Important Note: It's important to understand that Viva Finance itself doesn't offer payday loans directly. However, the term "Viva Payday Loans" might appear due to loan marketplaces that include payday loan options.

That being said, the general application process for payday loans can be similar across various lenders. If you're still considering a payday loan after understanding the drawbacks (outlined previously), here's a general guideline for the application process:

Step 1: Research and Compare Lenders

Step 2: Gather Required Documents

Step 3: Complete the Online Application

Step 4: Await Approval (if applicable)

Step 5: Repayment Plan

The Hidden Costs of Viva Payday Loans

While the upfront process may be fast, the hidden costs lurking beneath the surface can be financially crippling. Let's delve into the world of interest rates and fees associated with Viva Payday Loans and understand their true impact.

Interest Rates: A Shocking Reality

Viva Payday Loans advertise fast cash, but they come with astronomical interest rates expressed as Annual Percentage Rate (APR). This APR can be deceiving, as payday loans are typically short-term (due on your next payday). Here's why:

To understand the real cost, we need to perform some calculations:

Fees: Adding Fuel to the Fire

On top of the sky-high interest rates, Viva Payday Loans (and most payday loans) often tack on additional fees:

These fees can quickly add up, further inflating the overall cost of the loan.

Carefully consider the hidden costs of interest rates and fees. Explore alternative solutions like negotiating with creditors, credit card cash advances (used responsibly), or personal loans that might offer a more sustainable path to financial stability.

Viva Payday Loans vs. Personal Loans

In the face of financial needs, both Viva Payday Loans (often found on loan marketplaces) and personal loans might seem like options. But a closer look reveals significant differences that can significantly impact your wallet. Let's break down the key points of Viva Payday Loans and Personal Loans in a side-by-side comparison:

FeatureViva Payday LoansPersonal Loans
Loan AmountTypically small, up toTypically small, up to $1000 $1000Larger amounts, up to $50,000+
Repayment TermShort-term, due on next paydayLonger terms, 12 months to 7 years+
Interest RatesExtremely high APR (can reach 400% or more)Lower interest rates compared to payday loans
FeesOrigination fees, late fees, NSF feesMay have origination fees, but typically less expensive than payday loan fees
Application ProcessFast and easy, often approved within minutesMore involved, requires documentation and credit check
Credit Check RequiredNot always requiredUsually required
Impact on Credit ScoreDoesn't typically affect credit score (unless reported late)Can help build credit score with on-time payments
Suitability ForEmergencies (use with caution due to high costs)Various needs - debt consolidation, home improvement, etc.

Here's a quick summary of the key takeaways:

By understanding the differences between Viva Payday Loans and Personal Loans, you can make an informed decision that best suits your financial situation.

Can't Repay Your Viva Payday Loan? Understanding the Repercussions

Viva Payday Loans might seem appealing for their speed, but falling behind on repayments can lead to a cascade of negative consequences. Let's explore what happens if you can't repay your Viva Payday Loans on time.

The Downward Spiral: What to Expect

Remember: There is help available. Don't wait until the situation spirals out of control. Take action early and explore ways to manage your debt and avoid the severe repercussions of non-payment on a Viva Payday Loan.

Spotting Predatory Lending Practices

Predatory lenders often target vulnerable borrowers with unfair loan terms. Here's how to protect yourself:

Red Flags of Predatory Lending:

Protecting Yourself:

Remember: You have rights as a borrower. Don't be pressured into a loan you don't understand or can't afford. If you suspect a lender of predatory practices, report them to the Consumer Financial Protection Bureau (CFPB).

Viva Payday Loan Alternatives

Before you consider a Viva Payday Loan, let's explore a variety of alternative solutions that offer a more sustainable path to financial security.

Short-Term Solutions for Immediate Needs:

Remember: Short-term solutions should be a last resort and used cautiously. Explore all options and choose the one with the lowest costs and least risk to your financial well-being.

Building Long-Term Financial Stability:

These strategies focus on preventing future financial emergencies and creating a safety net:

Government and Non-Profit Assistance:

In times of hardship, don't hesitate to seek help:

Viva Payday Loans vs. Alternatives: A Clear Choice

Carefully consider the alternatives before resorting to Viva Payday Loans. These solutions offer lower costs, more manageable repayment terms, and can help you build financial stability in the long run.

Here's a quick comparison table to solidify your decision:

FeatureViva Payday LoansAlternatives
CostHigh interest rates & feesLower interest rates & fees
Repayment TermShort-term (due next payday)Varies, often longer terms
Impact on Credit ScoreDoesn't typically affectCan help build credit score
Suitability ForEmergencies (use with caution)Various needs, avoids debt trap
OverallRisky, can trap you in debtSustainable, promotes stability

The Bottom Line:

There are numerous alternatives to Viva Payday Loans. By exploring these options, you can manage your finances effectively and achieve long-term financial security. Remember, you are not alone. There are resources and support available to help you navigate financial challenges.

Frequently Asked Questions
Are Viva Payday Loans Easy to Get?

While Viva Finance itself doesn't directly offer payday loans, the application process for similar loans found on loan marketplaces can be fast and straightforward. They often require minimal documentation and may not consider your credit score. However, ease of access shouldn't overshadow the high costs and potential debt trap.

What's the Catch with Viva Payday Loans?

The biggest catch lies in the exorbitant interest rates and fees associated with Viva Payday Loans (or similar payday loans). These costs can quickly snowball, turning a small loan into a significant financial burden. Additionally, the short repayment term (often due on your next payday) can make repayment challenging, potentially leading to a cycle of debt.

Can Viva Payday Loans Help My Credit Score?

Typically, Viva Payday Loans don't affect your credit score unless reported late. However, due to the high costs and risk of default, they can hinder your ability to manage finances responsibly. Consider alternative solutions that can actually help build your credit score with on-time repayments, such as personal loans.

Are There Alternatives to Viva Payday Loans?

Absolutely! There are several alternatives to Viva Payday Loans that offer a more sustainable path. Explore options like negotiating with creditors, credit card cash advances (used responsibly with a plan to repay quickly), or personal loans with lower interest rates and longer repayment terms.

Can I Get a Personal Loan Instead of a Viva Payday Loan?

Personal loans can be a much better option than Viva Payday Loans. They offer larger loan amounts, lower interest rates, and longer repayment terms, making them a more manageable solution. Additionally, on-time repayments on a personal loan can positively impact your credit score.

What Happens if I Can't Repay a Viva Payday Loan?

Falling behind on repayments for Viva Payday Loans (or similar loans) can have severe consequences. Expect late fees, aggressive collection calls, damage to your credit score, and even potential lawsuits or wage garnishments in extreme cases.

How Can I Spot Predatory Lending Practices with Viva Payday Loans?

While Viva Finance doesn't offer them directly, be cautious of loan marketplaces offering payday loans with red flags like guaranteed approval regardless of credit history, exorbitant interest rates and fees, balloon payments, pressure to rush the process, or unfair loan terms heavily favoring the lender.

What Should I Do if I'm Struggling to Repay a Viva Payday Loan?

If you're struggling with a Viva Payday Loan (or similar loan), don't wait. Be proactive! Communicate with the lender to explore options like payment extensions or repayment plans. Consider seeking help from credit counseling agencies who offer free or low-cost financial advice and debt management assistance.

Can the Government Help if I Can't Afford a Viva Payday Loan?

Depending on your situation, government assistance programs like SNAP or TANF can provide temporary financial support. Don't hesitate to explore these resources if you're facing hardship.

What's the Best Way to Avoid Needing Viva Payday Loans in the Future?

Building financial stability is key to avoiding reliance on Viva Payday Loans. Create a budget and track your expenses, explore ways to increase your income, and establish an emergency fund to cover unexpected costs. This will help you navigate financial challenges without resorting to high-cost payday loans.

Bad Credit Payday Loans: Smart Solutions for Temporary Cash Flow Needs

Bad credit payday loans offer a quick cash infusion for those facing a temporary financial hurdle and struggling with a less-than-stellar credit score. While tempting due to their fast approval process, it's vital to understand the high-interest rates and fees associated with these loans before diving in, as they can easily turn into a costly burden and lead you down a path of deeper debt.

Qualifying for a Bad Credit Payday Loan

While bad credit payday loans might seem like a magic solution for those struggling with a less-than-stellar credit score, there are still requirements you need to meet to qualify. While the process might be faster and less stringent compared to traditional loans, understanding the specifics is crucial before you apply.

Here's what you typically need to qualify for a bad credit payday loan:

Be Aware: Variations Exist

It's important to remember that these are general requirements, and specific criteria might vary depending on the lender and state regulations. Some lenders might have additional requirements like proof of address or minimum income thresholds.

What About My Credit Score?

Unlike traditional loans that heavily weigh your credit score, bad credit payday loans typically don't perform a hard credit check. This is where they hold a particular appeal for borrowers with low credit scores. However, that doesn't mean your credit score is completely irrelevant. Lenders might use alternative methods to assess your ability to repay, such as analyzing your bank account activity or income verification.

Essential Requirements

While bad credit payday loans advertise themselves as accessible to all, there are still key requirements you need to meet to secure one. Understanding these is crucial before you apply, as they can impact your eligibility and the loan terms offered. Here's a breakdown of the essentials:

Basic Eligibility Criteria:

Beyond the Basics:

A Step-by-Step Guide for Application

While payday loans can be tempting for a quick financial fix, remember to proceed with caution. However, if you've decided to explore this option, here's a step-by-step guide to navigate the application process:

Step 1: Research and Compare Lenders

Not all payday lenders are created equal. Interest rates and fees can vary significantly. Research reputable lenders in your area or online. Carefully compare interest rates, repayment terms, and any additional fees associated with the loan.

Step 2: Gather Required Documents

Have all the necessary documents readily available before starting your application. This typically includes:

Step 3: Complete the Online Application

Most payday loan lenders offer a quick and convenient online application process. Fill out the application accurately, providing truthful information about your income and employment status.

Step 4: Review and Understand Loan Terms

Before finalizing the application, take time to thoroughly review the loan agreement. Pay close attention to the following:

Step 5: Funding and Repayment

Once approved, the loan proceeds will be deposited electronically into your bank account, typically within one business day. Remember, repayment is often due on your next payday. Ensure you have sufficient funds in your account to cover the repayment on the due date to avoid further complications.

Important Reminders

By following these steps and remaining cautious, you can navigate the application process for a bad credit payday loan. Remember, this should be a last resort, and exploring alternative solutions is often a better financial choice.

Struggling to Repay a Bad Credit Payday Loan?

Falling behind on a bad credit payday loan can feel overwhelming. The high interest rates and fees can quickly snowball, turning a small loan into a significant burden. But there is help available. Here are some options to consider if you can't afford the repayment:

  1. Contact Your Lender Immediately:
    • Be proactive. Don't wait until you miss a payment. Explain your situation to your lender and see if they offer any solutions, such as:
      • Payment extension: Negotiate for an extension on your due date, allowing you more time to gather funds.
      • Payment plan: Discuss the possibility of setting up a more manageable repayment plan with smaller installments spread over a longer period.
  2. Explore Debt Consolidation:
    • Consider consolidating your payday loan debt with a lower-interest loan from a bank or credit union. This can simplify repayment and potentially reduce your overall interest burden.
  3. Seek Credit Counseling Services:
    • Non-profit credit counseling agencies can offer valuable guidance and support. They can help you create a budget, negotiate with creditors, and develop a plan to manage your debt.
  4. Government and Non-Profit Assistance Programs:
    • Depending on your situation, government agencies or non-profit organizations might offer emergency financial assistance to help cover essential expenses and alleviate some of the pressure. Research programs in your area that can provide temporary financial aid.
  5. Consider Selling Assets (as a Last Resort):
    • If all else fails, consider selling non-essential assets to free up cash for repayment. This should be a last resort, as it can impact your long-term financial security.

Important Reminders:

How to Protect Yourself with Bad Credit Payday Loans

While bad credit payday loans might seem like a lifeline in a financial storm, predatory lenders can lurk within this market, waiting to exploit borrowers' vulnerabilities. These lenders use deceptive tactics to trap borrowers in a cycle of debt. Here's how to identify red flags and protect yourself:

Unrealistic Promises and Aggressive Tactics

Excessive Fees and Hidden Costs

Deceptive Loan Terms and Contracts

Protecting Yourself:

Remember:

  1. If something sounds too good to be true, it probably is. Don't be pressured into a loan that seems suspicious.
  2. There are resources available to help. Government agencies and non-profit organizations offer financial literacy programs and guidance on avoiding predatory lending practices.

By staying informed and exercising caution, you can shield yourself from predatory lenders and make informed decisions when considering a bad credit payday loan. Remember, exploring alternative solutions and building financial security are often better long-term strategies.

Frequently Asked Questions
What are bad credit payday loans?

Bad credit payday loans are short-term, high-interest loans designed for individuals with less-than-perfect credit scores. They offer quick access to cash, typically a few hundred dollars, with repayment expected by your next payday.

How easy is it to qualify for a bad credit payday loan?

Qualifying for a bad credit payday loan is generally easier compared to traditional loans. Lenders typically focus on your ability to repay based on income verification rather than solely on your credit score. Basic requirements often include proof of income, an active bank account, and valid ID.

What are the interest rates and fees associated with bad credit payday loans?

Bad credit payday loans are notorious for their exorbitant interest rates and fees. Annual Percentage Rates (APR) can easily reach 400% or more, significantly exceeding rates on credit cards or traditional loans. Fees can also add up quickly, further inflating the overall cost of the loan.

Are there any alternatives to bad credit payday loans?

Several alternatives can be explored before resorting to a bad credit payday loan. These might include negotiating with creditors for payment plans, seeking cash advances on credit cards (if interest rates are lower), pawning valuables for a short-term loan, or applying for personal loans from banks or credit unions that might offer lower interest rates and longer repayment terms. Government assistance programs or non-profit organizations may also offer emergency financial aid in some cases.

Can bad credit payday loans help improve my credit score?

Making on-time payments for any loan can positively impact your credit score. However, the high cost of payday loans and the risk of defaulting on the loan due to the high interest rates can ultimately damage your credit score.

What happens if I can't repay a bad credit payday loan on time?

Missing a payment on a bad credit payday loan can lead to additional fees and penalties. This can quickly snowball into a cycle of debt. Contact your lender immediately if you're struggling to repay and explore options like payment extensions or repayment plans.

Are bad credit payday loans safe?

Reputable bad credit payday loans can be used in emergencies, but proceed with caution. Shop around, compare rates and terms, and ensure you can afford the repayment before borrowing. Beware of predatory lenders with hidden fees or unrealistic promises.

What are some signs of a predatory lender?

Predatory lenders often lure borrowers in with guaranteed approval regardless of credit score or high-pressure sales tactics. They might have vague loan agreements with hidden costs or excessive fees. Exorbitant interest rates and balloon payments are also red flags.

Where can I find more information about bad credit payday loans and responsible borrowing?

Government agencies and non-profit organizations offer resources and guidance on financial literacy and responsible borrowing practices. These resources can help you understand bad credit payday loans and explore alternative financial solutions.

Is there anything I can do to avoid relying on bad credit payday loans in the future?

Building a solid financial foundation is key to avoiding reliance on payday loans. Create a budget to track your income and expenses, prioritize saving an emergency fund, and focus on improving your credit score by making on-time payments for existing debts. Exploring alternative financial solutions and building financial security are more sustainable strategies in the long run.