It’s always a good idea to be aware of the fact that there are other alternatives and options to getting a “payday loan”. Let’s face it – they are a great financial tool for thousands of people, but they aren’t right for everybody. It’s a good idea to know what your options are and access if a payday loan is in fact a good idea for you, given your financial situation.
The first thing to do is to ask your lenders for extra time to pay off your bills. The one key thing here is to be sure and find out what they will charge to do that – they may charge a late charge, an additional finance charge or a higher interest rate. Also, find out if you can get overdraft protection on your checking account. This is just a good thing to have in place regardless of your financial situation. But, be sure to find out the terms of your overdraft protection feature.
Next, be sure to research and compare credit offers when you are in need of a credit solution. Look for the credit offer with the lowest APR. You may get a better deal from your credit union, an advance on pay from your employer, or a loan from family or friends. Be sure to look into these potential solutions.
Another option may be a cash advance on your credit card. Lots of people have used this as an option over the last 15 years, but be careful. It may have a higher interest rate than your other sources of funds. Read the fine print on your credit card privacy and disclosure agreement to find out exactly what the terms are.
The thing that everyone should do, whether you are facing money problems or not, is to make a monthly budget that shows every source of income and every bill. This will keep you organized and probably surprise you when you see just where all the money goes. Keep a daily record of expenses too – this will ensure that you know where every penny is being spent.
Avoid unnecessary purchases at all costs and try your best to put some money away into a savings account. This can protect you against financial emergencies and give you the peace of mind that you need!
Finally, if you need help and you don’t know where to turn to, find your local consumer credit counseling service. These services are typically available at little or no cost. There are non-profit groups everywhere that offer credit counseling to consumers. In addition, you can check with your employer, credit union or housing authority for no- or low-cost credit counseling programs.
Whatever you decide to do when it comes to financial issues, make sure you do what’s right for you!
Updated: Some states now ban payday lending in which you would need to seek an alternative source of financing.
Installment loans are another form of a payday loan alternative where you can spend less money in interest and pay back the loan on better terms.