Payday Loan: Alternatives

Payday loans are not always the best option to tide over every crisis. They seem to be the easiest option but they come with extremely high cost and should be used when you have exhausted other options. And that too only after you have carefully budgeted that you will be able to repay these loans in next pay cycle itself.

So in a crisis what do you do? Try the following options:

Credit Unions: They will be happy to lend you some money in case of needs. A small lending company may also be better substitute.

Credit card advances: You can get a credit card advance loan from your card company but the option also comes little higher interest rate but not that high as the payday loans.

Negotiate with creditors: Most creditors will give you some leeway in time and will let you pay your bills little later.

Overdraft Protection: Some banks allow overdraft protection facility also. Talk with your bankers and see is you can avail of this facility. This facility on your checking account will allow you to cover up risks in case you make mistakes with your account ledgers etc.

Consumer credit counseling service: Call the service if you yourself can not negotiate with the creditors. These people are professionals who can sit with the creditors and get you some more time or easier rates with your creditors.

Compare credits: Always look into the APR and other cost of getting the loans.

Shorter credits from banks: Micro credit facility or smaller and shorter loans are provided by some banks. Make inquiry if your bank also offers such services.

Loans from employers: Lots of employers are very helpful and will provide you with loan in advance even when your payday is far way. Try talking with them and asking for such a loan.

Credit Card: Shop on the card and try to repay the amount by due date.

Consumer Counseling: Take consumer counseling if you think your lifestyle is not in congruence with your income and this is a repeated problem.

 Friends, family, community: This tough time is when you need to find out who are your real friends. Just ask around and some of them will be very willing to help you with these loans.

Lifestyle changes: Try to analyze your lifestyle. If you are on drugs or love shopping, take some counseling. Instead of loans this works long term.

Break the dependency: earn to earn more and spend less. Use your money wisely. The dependency on loans is not a viable solution in long time. Try working out better credit cycles for your self. Pay attention as to what you spend on when and how much you can afford.

All these suggestions may help you avoid the traps of Payday loans. However if you have to go for it, pay them on the due date else there is high penalty.