Posts Tagged ‘alternatives to payday lending’

Alternatives To Payday Lending – 3 Very Practical Options

There are times when you need money right away, and this is when payday cash advances look like the best option, as these small, short-term loans are approved instantly and even the money is transferred directly your bank account within a matter of just a few hours. But, considering the very fact that payday loans are very costly and that borrowers often get trapped into a nasty cycle of mounting debts, it is always wise to look for better alternatives to payday lending. If you look around, you will easily find many better, more practical and more affordable options. Following are some examples.

Use Your Credit Card To Pay For Unexpected Expenses

Though not a very wise option, but in urgent situations, it is still a much better alternative to payday cash advances. In fact, the first thing that is very important for you to realize is that if you are facing a situation, where you do not have enough savings to meet your urgent financial requirements and have to depend on options like payday loans or credit cards, it is a strong indication that you are not handling your finances properly. Therefore, make sure you use this credit card option this time only. Once you do that, you must spend some quality time in reviewing your debts and finances thoroughly. The idea is to create a budget plan so that you can save money and build and maintain an emergency savings fund. Besides that, when you use this option, you must also immediately start working on a repayment plan.

Advance From Your Employer

While you are looking for better alternatives to payday lending, you may also like to consider the option of requesting an advance from your employer. If you have been a committed employee and have always performed well, your employer is not likely to reject your request. The best thing about this option is that you do not have to pay interest on the money thus received. Depending upon an array of things, your employer may deduct all the money directly from your paycheck, which means you will receive a reduced paycheck the next month. Alternatively, you can agree to work overtime to compensate the money you have borrowed. There can be a third option as well, where your employer may allow you to pay back in small monthly installments.

Sell Of An Asset You Can Live Without

If you hate to borrow money from others, selling an asset that you can live without can also be one of the best alternatives to payday lending. It is obviously not an easy task to take this decision. It takes a lot of hard work to save money to buy an expensive asset; how can you just sell it? But, if you look at your overall situation, where your primary objective is not to acquire more debts (more financial burden), you may realize that this difficult option is worth your consideration. But again, you can make it a habit that every time when you are hit with a financial emergency, you will sell of an asset. This way, you will eventually end up getting bankrupt without even having to file for bankruptcy. This option should be considered only in an extreme financial emergency, but with a strong determination that you will start managing your finances in a better way and will always maintain an emergency savings fund so that you do not have to sell off your assets again.

Try To Pay Through Post-Dated Checks

If you are looking for better, more affordable alternatives to payday lending, you may also try to pay for the urgent expenses through post-dated check. However, whether this option is viable for you or not will depend on the kind of emergency you are facing. For example, if it is a medical bill and the doctor you have to pay to is the one you always go to whenever you need health care, you can request the doctor to accept a post-dated check. Since you are a regular client, it is very much likely that your doctor will not mind doing this favor for you. Likewise, if your car has broken down and you are having it repaired in the car repairing agency where you are a regular customer, you can use the same strategy there as well. In order to retain their customers, they are very much likely to accept postdated checks from you.

No matter which option you choose to go for, you are strongly recommended to have a readymade plan on how you are going to bring your finances back on track so that you can avoid getting into a situation where you may have to borrow money from others to pay for unexpected expenses. While there are plenty of alternatives to payday lending, you must always learn from your mistakes and maintain an emergency savings fund for a healthier and safer financial future.


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