Alternatives to Payday Loans

Usually those who avail of payday lenders end up paying so much in interest fees. The interest fees are, of course, on top of the initial value of the loan that was taken out. If you ever become attracted to always taking out cash loans or payday advances, it can be very hard to keep yourself out of a debt cycle.

When there is an emergency situation and you wish to avoid having to get a payday loan, there are still some alternatives that you can consider.

  • One is that you can discuss the situation with the people you owe money to. You need to do this once you are certain that you will be delayed with your payment. By alerting the creditor to what you are facing, perhaps he can let you extend the due date of the bill without even charging you anything because you are late in your payment. There are surprisingly a good number of creditors who are willing to do this.
  • If your creditor is not willing to extend your payment date, you can discuss your dilemma with your employer. If the employer lets you, you can maybe get an advance from your next paycheck and just deduct this value when the next payday comes. Or you can try working longer hours so you can avail of the overtime rate.
  • You can also think about any particular skills or hobbies that you have which can bring you some added cash. You can just put up a sign on your yard and tell people that you have a talent that you can offer them. Or maybe you can do a garage sale!
  • It was discussed that you can try to get an advance from your next paycheck. Doing this is essentially the same as taking out a payday loan but since this is not technically a loan you will not have to pay interest fees. You just need to talk to someone from human resources and see if this is possible. But of course some companies do not have this option for their employees. Maybe you can even set it up so that the cash that was taken in advance will not be fully deducted from the value of your next paycheck and instead be taken out in increments.
  • If you go online you will find plenty of websites such as eBay where you can sell old things that are of no use to you any longer. It can be quite a sacrifice to sell your personal items but you would have to be open to this if you really need the cash right now. You can bring your jewelry to a pawn shop or you can sell musical instruments if you have them. You can also choose to put up an advertisement on your local paper when you decide to sell your personal belongings.

To avoid having to go through all this trouble, you can simply just try to save up a little bit of cash every time that you get paid!

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