Credit unions are the best alternative to payday loans. They offer low-cost salary advance loans and free debt management programs as loss-leader incentives to join. These are concrete solutions for short and long-term financial problems.
With credit unions easing affiliation requirements and banks introducing absurd monthly debit charges, there has never been a better time to explore credit unions.
A credit union is a financial institution that:
- is not-for-profit
- is controlled and owned by members
- charges lower interest on loans than banks
What short-term solutions can credit unions offer? Some credit unions offer salary advance loans at 15-18% APR. The APR on payday loans can range from about 200% to 1500% or more.
What long-term solutions can credit unions offer? Many credit unions offer Debt Management Programs – frequently at no charge.
Credit unions are an excellent alternative to payday loans and they’re now easier to join because affiliation requirements are less strict than in days past.