Payday Loans

Borrowing From Your Employer Can Be Cheaper And Easier Than From Payday Loan Lenders

Payday loan lenders often advertise their short-term cash advance programs as a great tool to help those who need instant cash to meet some urgent financial crisis. The eligibility requirements for these loans are very easy, and in a sense, highly lucrative. Even people with worst credit score can easily qualify for the same, as these lenders do not even check your credit score. All you need to have is a checking bank account where your salary gets credited every month. But, there are a few catches, which actually make these programs very risky, horrible in fact. For example, the interest rates are usually very high, something in the range of 200% to 600% or sometimes even more. When you fail to make the repayment on the set due date, lenders give you a one month extension, which results in interest charges for 30 more days along with a hefty amount of late fees and check bouncing fees. The debt grows bigger and bigger within just a couple of months and soon becomes impossible to pay off. The non-payment of these loans in time pushes the borrower into a viscous cycle of debt. That is the reason why you must avoid these loans at all cost. If you need instant cash, there can be better alternatives that are cheaper and not risky at all. Borrowing from your employer is one of them, especially for those who have good employment record with several years of experience with the same company or organization.

Get Cash Advance At Zero Or Very Low Interest Rate

The predatory lending programs that payday loan lenders offer have trapped thousands of people into serious debt problems. That is the reason why most states have now enacted certain laws to regulate this type of lending practices. Even employers want to retain their good employees; many of them have even started several awareness programs for their employees to save them from the horror of payday loans. Many companies and organizations also offer short-term cash advance programs for their employees that work very much similar to payday loans, but with very low or no interest rate at all. You should enquire if your employer is also running any such program and whether you qualify for the same. If not, you can still talk to your boss and request for an advance. The chances are that your request will not be denied.

It Is A Safe Bet Both For The Employers As Well As For Their Employees

Borrowing an advance from your employer is probably the best alternative to the loan programs offered by payday loan lenders. It is a risk-free process for both employees as well as the employers. None of the parties loses anything, but gains a lot. Where you get easy cash with very low or no interest, your employer gets an opportunity to strengthen the professional relationship with their employees by helping them in need. There is no risk for them because they deduct the money from the next paycheck. You do not have to worry about the repayment because it will automatically be repaid in time. This way, you actually borrow from your own paycheck.

The Only Drawback?

The only drawback of this method is that you will get a reduced amount of salary the next month. But then, when you make the repayment to payday loan lenders, your salary anyways gets reduced. So, it is not a drawback and you must do your budgeting and financial planning accordingly keeping this thing in mind. If you think you will be again in financial trouble because of a reduced paycheck, you can request your employer to allow you to pay in small monthly installments. Depending upon how good professional relationship you have with your employer, you may get even that convenience.

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