Ten Payday Loan Alternatives

Posted by on Sep 6, 2006 in Articles

Ten Payday Loan Alternatives

Payday loans are the most expensive form of credit money can buy. In fact, licensed payday lenders are even more expensive than illegal loan sharks.

Online payday loans can also expose you to identity theft and fraud.

Payday loans should only be used as a last resort after all other options have been exhausted.

Listed below are ten payday loan alternatives…

Payment Plan with Creditors

If you are considering a payday loan to help pay bills, an excellent alternative is to contact creditors and propose a payment plan. If you are having trouble paying your bills, the last thing you need is an expensive loan. If you are employed and propose a payment plan, most creditors will be happy to work with you.

For details, please read Payment Plan with Creditors.

Advance from Employer

An advance from your employer is much cheaper than a payday loan but it reveals to your employer that you have financial difficulties.

For details, please read Advance from Employer.

Family and Friends

While borrowing money from family and friends is better than borrowing money from a payday lender, it should only be considered as a last resort. If you are unable to repay the loan in time, you stand to lose much more than money. It could destroy relationships that took years to build and create difficulties during family functions.

See Family and Friends for information on how to borrow money without endangering relationships with loved ones.

Credit Unions

Credit unions are an excellent alternative to payday loans. They offer short-term and long-term solutions to financial problems. Also, affiliation requirements are less strict so it is now easier to join than ever.

See Credit Unions for details.

Rainy-Day Fund

A rainy-day fund is an excellent alternative to an expensive loan but it is not something that you can make overnight. It requires planning and long-term dedication but can help you through future financial emergencies.

See Rainy-Day Fund for some tips on how to create a rainy day fund.

Interest Free Loans for Military Personnel

There is a wide range of interest free loans available to American armed service personnel. Each is an excellent alternative to a cash advance loan and should be explored.

For a detailed list, visit Interest Free Loans for Military Personnel.

Modest Needs

If you need cash for a one-time, unexpected emergency that requires $350 or less, Modest Needs may be able to provide a grant (you don’t have to pay it back).

For details and limitations, please read Modest Needs for details.

Overdraft Credit

An overdraft line of credit is a good alternative to payday loans. It is a form of overdraft protection but, unlike bounced check protection, it is safer and cheaper.

See Overdraft Credit for details.

Bounced Check Protection

Bounced check protection is a form of overdraft protection. Unlike an overdraft line of credit, however, bounced check protection is expensive and carries risks so should be avoided at all costs.

See Bounced Check Protection for details.

Credit Card Cash Advances

While credit card cash advances are cheaper than payday loans, they are expensive credit and carry many risks. Be sure to read the fine print of your credit card contract and avoid using an ATM machine when getting the advance.

For details and tips on how to minimize your costs/risks, please read Credit Card Cash Advances for details.

For more information about payday loans, please visit www.online-payday-loans.org.

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