Borrowers Have Alternatives To Payday Loans That Will Not Put You Further In Debt

| June 11, 2012

Borrowers Have Alternatives To Payday Loans That Will Not Put You Further In Debt

 

Alternatives To Payday Loans

Alternatives To Payday Loans

There are times when you are in serious need of cash yet the savings account or the jar on the fridge has nothing. It is at such times that you must not rush into making an ill thought decision of taking a payday loan. Although payday loans are helpful in terms of obtaining money fast, the interest rates are not so friendly. Sometimes these loans can put you in a bad spot after payday.

A payday loan charges a fee as well as interest.

The interest is normally a daily rate which means the amount owed accumulates every day until on pay day when borrowers can now pay it back. The more days you have to wait to payday, the more money you will need to cough up at the end of the day. Believe or not, there is nothing attractive about that and this can lead to a vicious cycle of debt.

It is just that when we are in dire need of money, we fail to think quickly of the best way to get it. Borrowers have alternatives to payday loans that have a reasonable interest rate. One of these is a bank loan. Bank loans do not charge a ridiculous interest rates and you can be given time to pay the loan. The other thing is it does not have to be paid at once but bit by bit. This will not put a strain on the financial resources available for your day to day upkeep. However, there is a catch. You just do not get a bank loan just like the blink of an eye. Firstly, you need to be in good books with your bank and have collateral.

Banks are not the only places that offer loans without the outrageous interest rates. There are financial institutions that have cash loans. It is obvious that the interest rates are slightly higher than at the bank but they are surely better than payday loans.

Other than these two, there are still more alternatives to payday loans. You can form or join a money club. The club can be composed of your friends or colleagues at work.  Each member of the group contributes an agreed upon amount of money and it is given to one member of the group in a rotational manner. This way you can plan what you will do with the money when your turn comes.

One of the alternatives to payday loans that people do not usually think of is the pawn broker. Pawn brokers can lend you any amount that you are in need of as long as you have something in exchange. This can be jewelry pieces, the spare television set or the tires of your cars. The good thing about the pawn broker is you get your item once you pay back the loan.

One of the best alternatives to payday loans is to borrow from friends and relatives. They are more understanding and if you are lucky they probably will not charge an interest rate. Even if they do, it will be the lowest of all the other alternatives.

 

Borrowers Have Alternatives To Payday Loans That Will Not Put You Further In Debt

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Category: Loans

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