Options to Consider Before Taking a Payday Loan
A fast and reliable source of cash is always desired, and of course, very helpful. And so, everyone looks for some quick spending capital no matter what their financial status is. If you are one of them, then you must have heard that taking payday loans will be your best bet. Those who have not dealt with payday loans often tend to go for this very option as the promise “no credit or bad credit” is very attractive.
But if you take a closer look at personal unsecured loans like payday loans, you will see millions of people struggling to pay off the loan. This is because; this type of personal unsecured loans is always associated with a very high interest rates. So, it is highly recommended that you should consider some other options before you go ahead with payday loan.
Right now you must be thinking: but what are these other options? For your convenience, here some of these recommended other options to consider has been discussed. So, if you want to know more about them, then do read on.
1. Take Help From a Family Member or a Friend
Many people think that asking for a loan from a person who is close to them will ruin their relationship, but this is not true. If the person is indeed close to you then, they won’t mind lending you some money when you need it. To make sure that the loan do not harm the relationship treat the “help” as a business transaction. In such a way you two will be entering into a legal contract built on trust and it will not feel like you took any kind of help. So, drawn a written contract/agreement stating all the financial information like amount of loan, the rate of interest and other such information and make sure that both you and the person helping you are signing the contract/agreement.
2. Contact Your Credit Card Company
Are you familiar with the fact that you have the option to take a cash advance from your very own credit card? Yes it is true that almost every credit card providing financial institutions offer the option to take cash advance from them. And the best part about this option is that the interest rate is lower than the average interest rate of payday loans. Each credit card company provides different rate of interest, so if you go for this option then contact or talk to your credit card company/your credit card’s customer care helpline to get the accurate information.
3. Consider Getting a Part-Time Job
Thanks to the internet, today you can earn a ton and that too without leaving your home. The options of home based part-time jobs are many to choose from. From answering questions/survey to being a virtual assistant to writing articles and blogs; there are many part-time jobs which pay a very good amount. If you choose such a job them you have the luxury to work from home, meaning you do not have to make any adjustment to your actual job to earn some extra cash to deal with the financial problem.
4. Advance From your Actual Job
Speaking of your actual job, have you considered taking a cash advance? Many companies/employers will allow you to take a certain amount as advance from your next month’s payment. Taking this option will help you to take care of any financially problem immediately and you can pay off your employer later from your future paychecks. As you are already working for the employer, so getting a permit to take an advance does not take long to be approved. Hence they are perfect if you need to take care of a small monetary problem as quickly as possible.
5. Use Your Unused Items
If you have any valuable unused items laying around in your home or office then, why not sell them to make a few bucks? Here it should be mentioned that you also have the option to auction or pawn off the valuable item which you do not use anymore. This is a great way to get your hands on some cash if you are in need as with this option there is no need to deal with any interest. You will immediately receive the amount and will be able to handle any kind of financial emergency. You can sell any old furniture or antique jewellery or your smart phone/tablet; the options are endless as there are thousands of reliable online websites which can provide you a platform to showcase your item to a large number of interested buyers.
6. Gather All The Money You Owe
If someone owes you money or if you have put aside any emergency fund then, it is time to collect them. Paying a very high interest (sometimes three times more than the interest rate of a traditional loan) is associated with a payday loan which can bring a lot of monetary problems in the future. If you own a business then your customers or lenders or dealers must have some pending payments to pay you. Besides this, you also must have an emergency fund set up for when your business will be in need of liquid cash. So, it will be best to consider these options as this means you will be handling the monetary problem from your money only and that too without any outside help.
7. Local Credit Union
In case of any kind of emergency situation, you have the option to take help from your local Credit Union. Many people do not consider this option as they are known for charging a high interest rate. Yes this is true, but the rate will be far less that the rate known to be associated with payday loans. So, you won’t be in deep water if you go with this option. Taking help from your local credit union is very easy and by following very simple steps you will be able to get the amount you need and be able to deal with the financial problem. As for the high interest, curbing your spending and proper budgeting will help you to pay off the loan quickly and easily, undoubtedly.
So there you have it, some very helpful and reliable options that you can take into consideration before you go ahead with a payday loan.