Payday Loan Alternatives
Borrowing is frequently very helpful when cash is needed immediately; more than often it is the only thing that comes to mind in a situation of a financial crunch. However, taking a loan might not be your only option, even though, it looks like there is nothing else.
Payday loans are undoubtedly the most convenient thing to apply for when you have to face some urgent situation. However, they are also the most expensive credit option now found at the market. Surely, there are optional ways to deal with your financial issues before you turn to a payday lender.
Here are some places that borrowers can check first. They might not be the speediest and most convenient solution but in various situation is makes sense having at least the information about their existence.
First of all, you can do the simplest thing - to ask some part of your salary in advance. Not every company practices payday advances; however, it is always worth asking than not trying at all. Besides, it is never late to check what additional allowances and benefits you might be eligible to.
Friends and family
Next option is your friends and family. True, not the best option ever but it is worth trying provided that your relationships are steady and smooth. Many people tend to avoid money issues when it comes to friends and siblings as it is often fraught with unpleasant consequences in the majority of cases. Still, this is a chance to get a loan interest-free.
One more pretty much effective way to deal with your financial issue it to apply for credit union. It might not be an ideal option for everyone as situations differ and not every working person is also necessarily a member of a credit union. However, for those who are, their loan can be a cheaper alternative in all the senses.
Needless to say, that among all these options it is hard to find one equally convenient as payday loans. But they are short-term and unsecured and have higher interest rates, which might be a problem for a person already in debts. Yet again, payday loans have very distinctive features such as availability for everyone and reliability, let alone ease of application and repayment process. Still, it is always better to know all the options and alternatives in order to make relevant loan decision.
In accordance with the Pew Charitable Trusts research, people do have their opinions on the account where to go for cash in case payday loans are no longer available. Here are the most obvious choices indicated in the picture and more information about the alternative ways of lending.