Many people think payday loans are a good idea. Whether you go into a shop or search for payday loans online, it’s never a good way to turn. No matter how desperate you are. They can make your situation so much worse in the long run. In this article I want to talk to you about some payday loan alternatives.
I’ve written before about not lending money to family and friends as it can ruin relationships. Lending is different to gifting. If you’re giving someone money, that’s your decision. If you need it back at some point, that’s a different matter. Loved ones do want to help each other out and if done properly, there is no harm in it. Make sure you have a contract drawn up that both side agree to. This should include the amount borrowed and the repayments. Also any interest, which will likely be a lot lower than a payday lender.
Banks are willing to loan you money if you meet their requirements. Their terms will be set in stone, as will be the repayments and interest rate. It’ll be cheaper in terms of interest than an expensive payday lender. Shop around, find one that works for you in terms of rates but also realise that you might not get the pick of the bunch if you have poor history and need money quickly.
A 0% credit card could help you to clear debt if you can get one. 0% interest means you can use your credit limit and not pay any interest for the term advertised. This could be 6 months, 12 months, 18 months or more. If you owe money and this could be cleared in one go within this limit that could work for you. Then you just need to pay off the credit card before the interest kicks in. Don’t see a credit card as an easy way out. It still needs repaying because if it isn’t, you’ll end up in the same situation as before.
Depending on your situation, you might be able to get financial support from the government. Look at the benefits and financial aid section of the government website here. This will not happen quickly, you won’t be able to access cash ultra fast but it can help you out in the long run.
There is help out there if you are struggling with debt. Organisations offering free advice and support are available like Christians Against Poverty. They are “passionate about releasing people in our nation from a life sentence of debt, poverty and its causes.” If this is you and you need to find a way out, they can help. A payday loan is the wrong direction. Non profit organisations like CAP are the right direction.
So many people turn to payday lenders because they see no other way out. They view them as short term loans which they can easily repay. But the fact of the matter is that you’ll end up paying back LOADS more than you are given. There are payday loan alternatives available, please find a way out, other than more loans which will only dig the hole deeper.
