Yes though we are in this business, we admit that payday loans are very costly loans. Many people cannot payback these loans and get into a debt trap. However everyone needs cash in emergency situations and some just don’t have it. Its OK, everyone faces this situation at least once in life. However, it is during this time that people look for a payday loan – and that may not be the only solution.
There are alternatives to payday loans that you may try if you are not comfortable taking a payday loan or your financial situation does not allow for any high interest loan. Here are the alternatives:
1) Ask your employer for a payday advance. Your employer is someone who can help you in an emergency. Try to keep a good relationship with your employer. In time of need they are the ones who can be of help. Explain them your situation. They may be able to help you. They may give you an advance payment. You can pay them later or on your next salary. Of course this cash does not carry any interest. 🙂
2) Call your bank. Check with them if they issue any short-term cash loans with LESS interest rate than a normal payday loan. If they do, apply for a loan. (Some banks do give small loans. You need to check with your bank if they give. Don’t assume that they don’t give small loans.)
3) If your bank does not provide short-term loans, call your credit union. They may have something to help you. They might provide you the cash you want at a lesser interest rate.
4) You can even ask your creditor if they can give you some extra time to pay. Tell them this “time” isn’t far away. It’s just your next payday. If they can wait till your next payday that should be fine. If they are not interested then ask if they are willing to give you time with an interest on the cash you owe to them for a specific time period. They might give you time.
5) You can even borrow money from your relatives or friends. You won’t get help until you ask for help. You will be surprised to know how much your friends/relatives are willing to help you. But please be honest. If they give you cash its in good faith. You must return them this cash within the time period you have promised them.
In addition to the above you must also ensure that you don’t let such a situation come in your life that you will have to depend on a payday loan to resolve that crises. For that it’s important you plan your financial future. It’s not possible for us to write on this as this beyond the scope of this article. However in short we can only say:
1) Save money. Don’t buy things you don’t need. Buy what you need and not what you want.
2) Make a realistic budget. Follow that strictly.
3) Get a paid and certified financial planner. A free financial planner will do more harm than good.
4) If you are deep in debt then get help of non-profit consumer credit counseling.
Thank you for visiting our website. Hope we helped you get a loan.