February 28, 2019 / By silverbear529
Payday loans can save you from a bad financial situation, but it is not a permanent solution. These loans have high interest rates and penalties if you don’t pay them when the date is due. Before applying for one, you should think of other alternatives that can help you during emergencies that do not submerge you into bigger debts. The following options can help.
Negotiate with your creditor
Everybody applies for a loan at some point in life. You should be realistic and honest with yourself when it comes to managing personal finances. If you can’t make payments on time, let your creditor know beforehand. A good creditor can extend the due date without charging you an extra fee. As long as you don’t make it a habit, they may not report you to the credit bureau.
Talk to your employer
Maintaining a healthy relationship with your employer comes with a lot of benefits especially during emergencies. You can request your boss for an advance on your pay check to utilize in the middle of the month. Do not forget that your employer will deduct the advance at the end of the month meaning your salary will be less than what you get. Some employers give hardworking staff members good loans that they can repay within an extended period.
Consider emergency hardship programs
Some local organisations have emergency hardship programs for residents. You can get assistance from humanitarian organizations as well as local churches in time of financial hardships. Get in touch with the local department of human resources to find out such programs in your area.
Get a loan from your credit union or bank
Do you have a good credit score and a stable job? Your bank or credit union can approve a small loan. Unlike non-bank companies, banks offer reasonable interest rates. A credit union can also offer a better loan than taking a check advance or payday loan.
Make use of your credit card
You can also make use of a credit card to fund your purchase instead of taking a payday loan. Avoid using your credit card regularly for this purpose since it can worsen your financial situation. Alternatively, get a credit card cash advance that has low-interest rates and fees. Though this type of advance is expensive, it is better than a payday loan.
Consult a consumer credit counsellor
Most of us tend to live from pay check to pay check. With the high cost of living and poor quality jobs, you may struggle to make ends meet. A credit counsellor can teach you strategies to help you reduce your monthly payments so that can budget for your daily expenses well.
Borrow from a relative or friend
Though borrowing from someone close is a tricky affair, it can save you when you need quick cash. It can be an alternative to payday loans when you have a good agreement and keep your end of the bargain. Pay them back as agreed to avoid jeopardising your relationship.