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4 Other Options to Payday Loans

If you are  struggling financially, payday loans are not the only option that you  have available to you. In fact, there are lots of other financial  options and many of them are more effective than a payday loan. You will  pay less interest, you will have more flexible repayment terms, and  your finances will be easier to manage. Below, you will find the top 4  alternatives to payday loans and reasons why you should consider them as  a financing option.

1 – Traditional bank loans

While a traditional bank loan may require an extensive application  process, bank loans are far more reliable than payday loans. Of course,  they will need to run a credit check and verify your employment, but as  long as you hold up strong during the application, it should only take a  few minutes to receive an approval. Traditional bank loans offer some  of the lowest interest rates you can find. In fact, after the recession,  interest rates became lower than they have ever been in the past. Now  is the perfect time to take out a loan if you need financial help.

2 – Credit cards

Using a credit card and taking out cash or even paying off your debt  directly with the card is generally going to be a better idea than using  a payday loan. Short-term loans have very significant interest rates  and it’s likely to be a lot higher than your credit card. Most credit  cards today have interest between 5-20% which is substantially lower  than the interest for a payday loan. If you take out cash with your  card, the bank may charge you an additional fee so you will have to take  this into account as well. However, in general terms, credit cards are a  reliable alternative to payday loans.

3 – Credit union loans

Credit unions are often non-profit organizations and they can provide  you with substantially lower interest than a traditional bank will.  Credit unions can be found all across the nation and if you are looking  for an alternative to payday loans, they are a reliable choice. Credit  unions are almost always located in the community that they serve, so  there should be a facility nearby where you can go speak with someone.  Keep in mind, credit unions sometimes have limits on the amount that you  can borrow and it’s usually about $500 per month. You will have to  repay any money that you borrow on a monthly basis.

4 – Negotiate payment plans with creditors

If you owe money to specific businesses, the best way to avoid taking  out a payday loan is to negotiate a credit check with the creditors.  Most businesses will be more than willing to work with you as long as  you make an effort to show that you are actively trying to pay off what  you owe. The best plan of action is to call up each company and speak  with someone about your account. Let them know how much money you can  pay immediately and how much you can afford monthly.

Peter Christopher

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