A payday loan is a quick but highly expensive loan that can help an everyday type of individual make the ends meet. This is one of the last choices that should be considered. The interest for a payday loan can reach over 300 percent of the loan itself, making it a horrible decision for almost everyone. Just like consolidating credit cards you need to consolidate your payday loans.
That fact can make these loans one of the hardest types of loans to repay. If in need, there are several other alternatives to make sure that the cash needed is in hand before it’s too late. Here is a short list of the best ways to avoid the payday loan cycle.
Borrowing Money from an Employer
It’s not unheard of to have money borrowed from an employer against their next paycheck. With 90 percent of all businesses in the United States being small businesses, it can make it quite easy for the average employee to ask his or her boss for a small amount of money to get through until the next payday.
Most often, these pay advances are done with no interest and is one of the best ways to get the income you need to make sure the bills are paid on time. The trick to this type of loan is making sure it can be paid back by the next payday, or at least planned out with the employer to be paid back across several paydays. One on one communication with the person that pays you and works with you on a daily basis is the single best way to get the loan you need right now.
Pawning your goods, such as computers and televisions isn’t the ideal way to get the money you need, but it is one of the fastest and most hassle free. Often times, the interest is only a small portion of what is borrowed, likely only $50 for every couple of hundred borrowed. In the end, if you don’t have the money to pay the loan back, you don’t have to, they simply keep your goods and call the loan even.
Negotiate a Payment Plan
The first thing that should be tried is negotiating a payment plan with company or creditor that you are late with. Usually if the creditor is told that the money is going to be late but still paid, the company will be happy to work out some kind of payment plan to make sure the bill is paid and you don’t fall any further behind.
Borrow Money from Your Checking or Savings Account
Usually if money is needed over a short period of time, the best choice is to borrow money is to over draw your checking or savings. Calculate the amount needed and will likely only incur a small fee of $25 for the entire amount overdrawn. This fee may be a bad mark on your checking or savings, but it will be much smaller than the fee incurred by a high interest payday loan.
These are just a few tips to use if you are looking for a few extra dollars to help pay that bill that is looming over your head and causing undue stress. There is always an alternative to the payday loan. Don’t be afraid of asking relatives for a few dollars to help pay a bill, as well. What else is family for but helping family! Instead of paying the outrageous interest fees of payday loans, why not consider to apply for credit card deals today?