Payday Loans

4 Things You Can Do To Avoid Cash Payday Loans

Cash do seem to carry certain benefits, but there are several risk factors associated with the same. For example, it is very easy to qualify for these lending programs. The application process is very simple. Lenders do not check your credit score. You get instant approval. Despite all these great features, there are a few things that make these loans a very risky financing option. The two main culprits are huge rate of interest and the provision of automatic renewal. That is the reason why majority of the borrowers often find themselves in a serious debt trap, especially when they miss a couple of payments toward these loans. You are strongly recommended to look into better options and avoid these debt traps. Following are a few alternatives that you may like to try.

Small Credits From Banks

Some banks these days are offering smaller and shorter loans (also commonly referred to as micro financing), which can be a much better alternative to cash payday loans. The micro credit facility allows you to borrow a small amount of money (a few hundred dollars) for a very small period of time (one month to a couple of months). The great thing about these micro loans is that they charge a very low rate of interest as compared to what payday lenders charge.

Advance From Employers

Your employer can be an easy financer for you. Many employers can be very helpful. Therefore, it might be a nice idea to talk to them about your financial problem and ask if they can provide you an advance; offer them to deduct that advance from your next salary. If your employer agrees to do that, it can be the easiest, quickest, safest and most affordable way to get instant money so that you can meet your urgent financial requirements. Most employers do not even charge interest on such advances.

Community, Family, And Friends

Your neighbors, family members, friends, and colleagues can also be much better alternatives to cash payday loans. Many people hesitate asking for help from their friends because they fear rejection and the resulting embarrassment. But, if your friends and colleagues are also people with fixed monthly income, even they may need this kind of help in future. If you take it this way, you will not hesitate. The idea is to sit back with people you love and trust (and who love and trust you) and discuss your problems with them. Make sure that you repay them in time; though there should not be a set due date, you must make the repayment as soon as you get your salary.

Use Your Money Wisely

Wise use of the money can be another great way to avoid cash payday loans. When people say that they do not have enough cash to meet their urgent financial requirements, they often see things quite negatively. So, be a little positive and analyze your problem honestly. If you stop a few payments and contribute the money thus saved to meet your financial emergency, it can save you from the debt traps offered by payday lending. Get a pen and paper and start doing your calculations.

Make a plan; do some strict budgeting for the next couple of months. You are likely to find a practical way on how to meet your financial requirements without needing to borrow . This may mean getting a second job, working overtime, spending less, and other such things.

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