Idiot’s Guide to Avoiding Payday Loans
You probably have your reasons for using payday loans — your paycheck is not enough to cover all your expenses, or you require some money for an immediate purpose and don’t have enough liquid cash…. The reasons are numerous but the result is usually the same. You take a payday loan for two weeks, are unable to pay off the money at the end of the term, extend the term for some more time and before you know it, your debt burden is threatening to bankrupt you. I have painted a scary but real picture of what you can expect if you take a payday loan. So, what other alternative do you have in case you need some ready cash? I have suggested below a few alternatives that could help you tide over your financial problems:
Company Advance: Some companies and employers grant paycheck advances to employees. Since the amount you are given is an advance against your salary and not a loan, you don’t have to worry about interest. This makes it a whole lot cheaper than payday loans.
Community Groups. You may not know this but there are quite a few faith-based groups and community organizations that provide emergency assistance. This is done either directly or through social services programs.
Credit Cards: Ever tried getting a cash advance on your credit card? If you haven’t done it yet, try out this method. These advances are offered at about 30 percent APR and are much cheaper than getting a payday loan. Then there are credit union loans, which are short-term loans. Since the topic of credit union loans deserves a little more space, we will return to the topic again.