Alternatives to Payday Loans
Posted on January 26, 2008
Filed Under Payday Loans
Payday loans may seem like the easy way out. There is no face to face contact, money magically appears in your account with no hassle apart from filling out a couple of forms.
Problems solved…
Until the you fall into debt trap, loan extension, penalty fees, recycle etc
Before jumping into payday loans it is worth considering the alternatives to payday loans. Have you considered the following:
Cash Advances on Credit Cards
Credit card cash advance is probably the first place to try with APR that are much more reasonable compared to payday loans. There are credit card companies out there that can help those with credit issues obtain a credit card. Don’t assume that this is a dead end.
Negotiate with creditors
Don’t be afraid to talk to your creditors to sort a reasonable plan for paying back what they are owed. The chance of paying back existing debt is not going to increase if you get yourself into a debt trap.
Credit Unions Loans
Credit unions often offers loans to its members with reasonable interest rates.
Overdraft protection
Although not a loan, signing up for overdraft facility will prevent checks bouncing from your account when not sufficient funds are in there to cover the cheque. This will prevent costly check bounce fees from incurring.
Microloans
This is something new and worth a try. This is a website platform for matching borrowers and individual lenders together. Borrowers bid for loans while lenders lend money according to the interest rates offered by the borrowers and their cause.
At end of the day, don’t be afraid to talk to your family and friends, they are going to think you are even more foolish for getting yourself into a trap that cannot not recover from than lending a few hundred dollars to you.
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