Payday loan alternatives could be the only thing you need when you are having financial problems rather than the common payday loan that might put in more debt.
The recent global economy downturn which has caused thousands of job loss, has brought about the popularity of payday loan lending companies as many families find themselves in money problems.
Even if you have saved enough cash as back-up so that you can be able to deal with financial emergencies, things can still go wrong most especially if the back-up cash is not sufficient to service your financial problems.
Why Payday Loan
Nowadays, payday loan lending is a big business that is so popular that you can feel their presence in almost every corner of our streets. It seems like it’s very easy to get a payday loan; people can just walk into any of these payday loan lender shops or apply for a payday loan online.
Our media has been bombarded with all sorts of payday loan advertisements. You can’t even watch an hour of a television programme without an advert or two of a payday loan lender telling you how easy it’s to get a payday loan. But behind this recent popularity of payday loans is the hidden fact that customers often find the repayment terms of traditional payday loans difficult to meet.
Payday Loan Alternatives You Should Consider
Before you make up your mind and decide that a payday loan is the only solution to your financial worries, it is advisable to consider some of these payday loan alternatives.
#1). Set A Budget And Spend Less
The idea is not just for you to spend within your means (spend what you earn), but also for you to spend wisely. By taking a closer look at your monthly spending habits you will be able to determine where you need to exercise some kind of restraint.
#2). Look For Additional Income
Likewise, you can also try to work overtime; work a few extra hours to get some overtime pay if your employer allows it. Another good option is to use websites like ebay to sell some of your old stuff to raise some extra cash to get you through.
#3). Join Your Local Credit Unions
Credit union loans can take longer to arrange, but they offer cheaper payday loans that you could choose to repay over three months and they are limited by law to an APR of 26.8%.
All you have to do is to join your local credit union because you have to be a member to use their services. Credit unions also offers more affordable loans at 13.86% APR for people with a poor credit history.
#4). Get Crisis Loan/Grant Or Borrow From Friend Or Family
With this type of loan, you can be able to borrow between £100 and £1,500, and it is interest free which means that you only pay back the amount you borrowed. Another payday loan alternative is to borrow money from a friend or family member.
But it’s advisable to make sure that you pay the money back on time as money and friends or family often don’t mix.
#5). Ask Your Employer For A payday Advance
Simply put, it’s the same thing as a payday loan, without the risk of falling into a pit of debt through the excessive fees and loan trap. Some companies with a good cashflow can even give loans that can be repaid over multiple pay periods, lessening the effect on your take-home pay.
