Alternatives to Payday Lending

Alternatives to Payday LendingEven though it might not seem like it, there are several alternatives to payday lending so you should always make sure that you absolutely need the loan before taking it out.

They say that knowing is half the battle, and simply knowing that you have other options, whether or not you use them, is half the battle when it comes to payday loans. You don’t want to find out later that the whole ordeal could have been avoided if you just went with a different loan type.

Alternatives to Payday Lending – Your Options

Taking out a loan from a credit union may be an option for you. Many times they’ll be easier to qualify for than a loan from a major bank. Check to see if there is a credit union that you can join. It could be through your work, your church, your university, or some other affiliation. There are also some credit unions that are open to just about anyone and these might be an avenue to explore.

You can also try going to a smaller bank as one of the alternatives to payday lending, one that isn’t as well known as some of the biggest banks out there. They might have more lax requirements when it comes to what they look for in a borrower.

Even though you might not want to, you can ask family or friends for a small loan and let them know exactly when they’ll get their money back, including how much interest you’ll pay them. Then make sure that you live up to your promise and pay them back on time. You should always give them back more than what you borrowed, and if they won’t accept interest from you, ask if you can take them out to dinner or do some other activity with them, your treat, as a way to show you appreciated the loan. When you consider how much money you’ll be saving from not having to take out a payday loan, a nice dinner with someone you love and care about it a much better way to spend your money.

Payday Loans Solve Nothing
The reason it’s so important to view payday loans as the absolute last resort when it comes to getting money is that they aren’t really going to solve your financial problem, instead they’ll just extend that problem into the future and add yet another bill to your monthly load. Be sure to get credit counseling if you need it, and don’t feel bad if you do because these corporations spend millions each year on advertisements that brainwash you into thinking that payday loans are helpful and easy to get. Counseling can help dispel some of these myths and get you to a healthy place in terms of how you view different types of financial tools.

It can also help you establish a budget so that you have a nice cushion so that you never get into a jam and need to go through this process again. When you consider that most payday loans are for less than $1000 it really goes to show just how few people have a basic savings account set up for small financial emergencies. Credit counseling can help you set up a fund like this so you don’t ever have to stress about payday loans again.

Exploring Your Options
Most people do not fully explore their financial options before taking out a payday loan. The lure of fast cash is just too great, and if they run into a financial jam the first thing they think of is how easy it is to get a payday loan. Don’t write off an option in your head, take action and try the above options so that you know for a fact they didn’t work.

Our Recommendation
As long as you know all of your alternatives to payday lending before going forward with it, you’ll at least know that you thought long and hard about what else you could do. Simply taking that time to think it over puts you ahead of the game, because later you’ll know that you really needed to take out the payday loan that you’re still trying to pay off months and months later.

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