Alternative Ways to Avoid Payday Loan


If you spend more than you earn regularly, it’s a bad practice. To overcome this situation, if you choose a payday loan, it will be a “risky solution”. Payday loan companies often take the benefits of your need and lead you into a debt trap.

The most obvious disadvantage of a payday loan is High cost. The APR of a payday loan varies between 400% and 800%. Think of your investments even with high interest, you can get an annual return of 20% to 30% for an investment on a stock even though investments on a stock are considered “high risk”.

So consider all possible alternative ways before choosing a payday loan cash advance.

• A payday loan situation arises due to poor financial planning. I suggest you prepare a realistic budget at the beginning of each month to keep the balance between your income and expenses. Avoid unnecessary purchases. Also save some money every month. Your savings will be calculated during the crisis. Consider taking help from a consumer credit bureau.

• Ask your creditors to give you a favor by waiting until your next payday. If you can manage them that way, you don’t need to borrow the loan and thus you can save $ 15-30 by not paying the loan interest!

• Use your credit card to make urgent payments. Usually the interest rate on a credit card loan is very low; even you have to pay nothing as interest if you repay the loan within one month. Again you save $ 15- $ 30 by not paying the loan interest.

• Ask your banker or credit union for a short-term loan. The costs of these loans are such that you can easily pay them off.

• Ask your employer to give you a portion of your salary as an advance so you can withstand your emergency bills.

• Consider borrowing money from your friends or relatives. In fact for a period of 1-2 weeks no one would prefer not to give you the money (I strongly believe!) Unless you had a bad credit history with him or her. That way you will meet your monetary requirements at no particular interest costs! Think also of the harassment if you will not be able to repay the loan on a specific date to the payday lender !!

• Consider arranging with your banker to withdraw from your control air conditioner to protect yourself from additional charges due to bounced checks. This installation costs you only $ 5. Sometimes there is no fee at all!

• When shopping for credit, check the APR and other official charges of different credit offers. This way you can avoid higher monthly charges with lower credit cost.

• Many social groups and communities provide emergency assistance directly or through various social service programs. For example, I can mention “Federal poor home emergency relief program” gives subsidy to families with lower income.

• There are several loan companies that offer a loan of $ 500 to $ 100 to active duty and retired military personnel. The APR of these military loans varies from 34% to 40%, which is 10 to 15 times cheaper than a payday loan.

• There are also several consumer finance companies that give small consumer loans with a low APR of 60%, which is also cheaper than payday loans.

Do the homework when you are about to take out a payday loan. Look for a low interest payday loan. Gather all the knowledge about a payday loan before you borrow it. For more detailed discussions on wage day alternatives, visit []. If you have a problem or question about a payday loan, join our discussion board at []



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