Alternative Ways To Avoid Payday Loan

Alternative Ways To Avoid Payday Loan

If you​ spend more than you​ earn on​ a​ regular basis,​ it​ is​ a​ bad practice. to​ overcome this situation,​ if​ you​ opt for a​ payday loan,​ it​ will be a​ “risky solution”. Payday loan companies often take the​ advantages of​ your need and lead you​ in​ debt trap.
The most obvious disadvantage of​ payday loan is​ High cost. the​ APR of​ payday loan varies between 400% to​ 800%. Think about your investments even on​ a​ high interest stock,​ you​ can get an​ annual return of​ 20% to​ 30% for investment on​ a​ stock although investments on​ stocks are considered as​ “high risk”.
So,​ consider about all the​ possible alternative ways before opting for a​ payday loan cash advance.

•Payday loan borrowing situation arises due to​ bad financial planning. I suggest you​ to​ prepare a​ realistic budget at​ the​ beginning of​ each month in​ order to​ keep the​ balance between your earnings and spending. Avoid unnecessary purchases. Also save some money each and every month. Your savings will be counted at​ the​ time of​ crisis. Consider taking help from a​ consumer credit counseling bureau.

•Ask your creditors to​ give you​ a​ favor by waiting until your next payday. if​ you​ can manage them to​ do so,​ you​ need not to​ borrow the​ loan and thus you​ can save 15-30 USD by not paying the​ loan interest!

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

•Ask your banker or​ a​ credit union for a​ short-term loan. the​ costs of​ these loans are such that you​ can easily afford.

•Ask your employer to​ provide you​ with a​ portion of​ your salary as​ advance so that you​ can cope up with your emergency bills.

•Consider in​ borrowing money from your friends or​ relatives. Actually for a​ time lag of​ 1-2 weeks nobody will prefer not to​ provide you​ the​ money (I strongly believe so!) unless you​ had a​ bad credit history with him or​ her. Thus you​ will meet your money requirements with no interest charges at​ all! Also think about the​ harassments if​ you​ can’t be able to​ repay the​ loan at​ specific date to​ the​ payday lender!!

•Consider in​ making arrangements with your banker regarding withdrawal facility from your checking A/c in​ order to​ protect yourself from making extra charges on​ bounced checks. This facility costs you​ as​ little as​ $5.Sometimes no fee is​ needed at​ all!

•When you​ shop for credit,​ check the​ APR and other official charges of​ different credit offers. Thus you​ can avoid higher monthly charges with lower credit cost.
•Many social groups and communities provide urgent assistance either directly or​ by various social services programmes. For example,​ I can mention “Federal low income home emergency assistance programme” provides financial assistance to​ families with lower income.

•There are several loan companies who offer $500 to​ $100 loan to​ active in​ duty & retired military personnel. the​ APR of​ these military loans range from 34% to​ 40% which is​ 10 to​ 15 times cheaper than payday loan.

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

Do the​ homework when you​ are about to​ borrow a​ payday loan. Look for low interest payday loan. Gather all the​ knowledge about payday loan before borrowing it. For more detailed discussions on​ payday loan alternatives,​ visit Personal-Finance Articles.

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