6 Alternatives to Payday Loans You may Consider when You Need Cash

Paydays loans are quite popular given the ease of getting the money. However, they are quite expensive. They come with APRs that are as high as 400 percent. If you are not careful, there are chances that you may end up in a debt cycle. Fortunately, there are payday loan alternatives that can take care of your short term money needs while getting you out of the long-term debt. Here are some of them.

1. Credit cards
Although quite expensive, credit card loans are not as expensive as payday loans. You can apply for a credit card and get financial assistance on the same day. Many financial institutions also advance cash through the credit card. Check for best credit card providers in your locality.

2. Apply for a personal loan
You can get a personal loan from your credit union, bank or any other financial institution. The advantage of a personal loan is that it has lower interest rates and a longer payment period. Many lenders are also willing to negotiate the rates. However, ensure that you take the loan amounts that you can pay comfortably.

3. Consolidate your debts
If you have several high interest loans, consider consolidating them to pay them in one loan. Consolidating loans makes paying the loans easier and in most cases cheaper as you can get a cheaper loan than all the small loans combined. Be sure to check the interest rates when applying for this loan.

4. Look for ways to make extra cash
You can generate cash instead of borrowing money especially if you are not dealing with an emergency. You can do a quick gig after your main job, sell unwanted items at home share your car or the home. You can actually create a consistent source of extra cash in this manner.

5. Negotiate with the creditors
If may find that most of the creditors are willing to reconsider their terms of credit to enable you pay off your loans comfortably. Tell them the situation that you are in and how you expect to pay off your debts. With a longer period of paying the loans, you can manage your income to take care of the loans and your personal needs.

6. Do not purchase items you do not really need
Do not borrow money to purchase non-essential items such as entertainment, new clothing and such. If the car has broken down, you can carpool before you get funds to have it repaired. It saves you from paying high interests on things that can wait.

Always take a loan that you can pay and direct it to the need at hand. Moreover, look for a long-term solution to your financial woes. Consider more income streams or a better job, and save more.

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