Payday Loan Alternative
When you find yourself short of cash, payday loans should always be considered a last resort. They’re fast and simple, but can be quite expensive. If you’re not sure whether or not you’d want to take out a payday loan to cover your expenses, there are plenty of other payday loan alternative options available for you to think about before coming to a final decision.
Let’s look at some of the alternatives, particularly for those with poor or limited credit.
Rather than getting a payday loan, it may be an option to ask the bank for a small bank overdraft. You’ll be charged interest on the amount you’ve borrowed until it’s repaid. There may be an administration charge, an arrangement fee, and monthly fees.
The overdraft can also be taken away at any time, so if you do have an overdraft it’s crucial for you think how you’re going to repay it, how much it’ll cost and be certain you won’t exceed the limit.
Credit unions are non-profit community-based organisations. They can offer loans, savings and current accounts for their members’ benefit.
People pay into the union to save or to borrow money if they need to. The idea is to encourage people to take control of their money. Also, to save what they can and borrow only what you can afford to repay. A credit union can be a way to access credit if you’re likely to be declined by the bank.
There are some companies who work with employers to offer advances on salaries, which can then be paid back at an agreed rate. In some cases, there’s no interest on the advance, but there may be fees for using the service.
As with other forms of borrowing, it’s important to consider if a salary advance is the right option for you. Employers should also consider whether a salary advance is in the employer’s best interest, as this could be masking a wider problem.
Family and Friends
Borrowing emergency money from a family member or a friend can help you avoid the risks that go with payday loans.
But do make sure that both you and the person you’re borrowing from take the time to put your agreement in writing. As well as work out a budget and a repayment plan. But also, discuss what will happen if you’re late paying it back or don’t repay it.
If you decide that you would rather take out a payday loan online, then these can be paid back in full or in part on your next payday. At LoanPigUSA, we can refer you to direct lenders who you can borrow money from $100 to $2500. Which can be paid back in one lump sum or spread over a period up to 12 months.