Payday Loans

Try These Four Payday Loan Alternatives And Be On A Safer Side

Short-term payday cash advances do not always make the best financial decision. Therefore, when a financial emergency occurs, you must first look into payday loan alternatives. Chances are that you will find a better way to get money and meet your requirements. Payday lending is undoubtedly a very popular way of financing, probably because it offers certain features that are highly lucrative. For example, the eligibility criteria are very easy. The application process is very simple, as it is almost a paperless process. The lenders do not check credit scores of the applicants. Most importantly, the applicants usually get instant approval. But, despite all these features, there are several unhealthy, risky aspects associated with payday lending programs. The most negative thing about these loans is that the rate of interest charged is unusually very high. Besides that, failing to make the repayment in time often traps the borrowers into a never-ending debt. Therefore, if you are dealing with a temporary financial crisis and do not have an emergency fund to meet the requirements, you may like to look into the following options.

Credit Card Advances

Credit card advances can be one of the better payday loan alternatives. Though in usual circumstances, even credit card advances do not make a great financial decision because they also come with a very high interest rate. The reason why it is preferable to payday lending is that the rates are still significantly much lower as compared to what payday loans charge.

Credit Unions

There are several Credit Unions that offer small loans for a short period of time. Though the approval may not come almost instantly, your application is likely to be approved within 2-3 days, which is obviously not a very long waiting period. Even people with bad credit may find a better loan program with credit unions or similar small lending institutions. It is just that credit unions charge a higher rate to borrowers with bad credit, but again, the rates are still very low in comparison to the rates charged by payday lenders. Therefore, borrowing from credit unions can also be one of the best payday loan alternatives.

Overdraft From Bank

Many banks these days offer overdraft protection to their customers. As per these protection programs, you can borrow more money (up to a certain limit) than you have in your bank account in a given month. The extra money you thus borrow is deducted directly from your bank account in the next month on a certain date. People with regular monthly income can easily qualify for these programs. So, it will be a nice idea to talk to your bank and find out if you qualify for overdraft protection.

Negotiations With Creditors

Talking to creditors when you are not making the payments is something that you probably will like to avoid because of your assumption that such attempt may cause harassments to you. But, as a matter of fact, negotiating a more favorable deal with your creditors can be one of the best payday loan alternatives. Many people take payday loans in order to get funds in their bank account so that the checks they have given to other lenders should not get bounced. This is also applicable in cases where you have authorized your creditors for direct debit from your account. Payday loans can NEVER be a wise option to deal with such debt problems. It does not make any sense at all to acquire a very high-rate debt to repay a comparatively very low-rate debt in a timely manner. If you still do so, you will soon end up into a deeper debt problem that may even lead to bankruptcy. Therefore, a better option is to contact your creditors and discuss your financial problems with them, requesting them to make the terms a little more favorable so that you can easily make the repayment. Trust me, this option often works.

If you carefully analyze your situation and look around the options available out there in the market, you can definitely find many better payday loan alternatives.


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Posted in Payday Loan Alternatives, Payday Loans | 1 Comment »

One Response to “Try These Four Payday Loan Alternatives And Be On A Safer Side”

  1. Albert says:

    The 4 ways to save you from the trap of payday loans are really mind-blowing. Payday loan alternative are given in such an interesting way that any body can get help from this article. Some times circumstances push us to get money from anywhere and at that time Pay day loan appears as a wish which has been fulfilled. But, once you take these loans, the reality comes before you in a very horrible manner. The interest rate on such loans makes it impossible to get out of their trap. So, it is always better to maintain distance from Payday Loans. You can go for advance from credit cards; their interest rate will become what low in comparison to that of payday loan. Banks can also provide you some extra fund for a short span of time; it can be a good option. The most important thing is to talk to your lenders and get the time extension. If you can convince your lenders by telling them about your financial problems, they can give you relaxation in time. I am sure if you go with any of these alternatives rather than payday loan, you will be happy with your decision.

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