• Payday Loans

Finding Alternatives of Payday Loans

A payday loan is a short term loan for which the lenders charge a very high amount of interest. It is designed in such a way that you should repay it within one or maximum two pay periods. In return, the borrower gives post dated checks or direct debit authorization to the checking account. The payday loans don’t require a credit check most of the time. It is easily available to anyone who needs it on an urgent basis. But at the same time, it is very easy for the borrower to fall into the trap of a never ending loop of payment towards the payday loan due to the high fees and high rate of interest. The interest rates of such kind of loans can go up to four hundred percent.

These types of loans bind the consumer into a money trap as they don’t seem to have any other alternative. But there are a lot of other options you can choose from. The payday loans are to be used with great caution and to be considered only in emergency sort of situations as a last resort. You should go for it if you believe you can repay the loan within one or two pay periods. If not, then it is best you stay away from the payday loan and look for other alternatives. Here are a few alternatives.


First and foremost, you can meet with a creditor and negotiate a payment plan with him. If you feel you need more time to pay and are unable to meet the set date, you can call and let them know about your situation and ask for some more time. It will come as a surprise to you as to how many of them are willing to help you out and give you an extension. The next thing you can do is asking for an advance from the place you work or your employer. We all face some or the other kind of financial emergencies in our lives. You can talk to your employer about it and take an advance from your salary. This is actually the best way to go about it because it is not a loan and it is your own money. It is just that you are getting it a little early due to an emergency.

It is best to save a penny for a rainy day. You can dig into your savings account or emergency fund at such times of need. If you don’t have one right now, make sure you open one as soon as possible and make small contributions to it on a consistent basis. It can be as small as $20 a week and you will be thankful you saved it when you need it in the future. You can also ask from the credit union you are a member of. You can go and talk with their services department and take a short term emergency loan. You can also ask from good friends and relatives to help you out in the time of need.

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