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Alternative Ways To Avoid Payday Loan
By: Angelina Rosario
If you spend more than you earn on a regular basis, it is a bad practice. To
overcome this situation, if you opt for a payday loan, it will be a “risky
solution”. Payday loan companies often take the advantages of your need and lead
you in debt trap.
The most obvious disadvantage of payday loan is High cost. The APR of payday
loan varies between 400% to 800%. Think about your investments even on a high
interest stock, you can get an annual return of 20% to 30% for investment on a
stock although investments on stocks are considered as “high risk”.
So, consider about all the possible alternative ways before opting for a payday
loan cash advance.
•Payday loan borrowing situation arises due to bad financial planning. I suggest
you to prepare a realistic budget at the beginning of each month in order to
keep the balance between your earnings and spending. Avoid unnecessary
purchases. Also save some money each and every month. Your savings will be
counted at the time of crisis. Consider taking help from a consumer credit
counseling bureau.
•Ask your creditors to give you a favor by waiting until your next payday. If
you can manage them to do so, you need not to borrow the loan and thus you can
save 15-30 USD by not paying the loan interest!
•Use your credit card for making urgent payments. Usually credit card loan’s
interest rate is very low; even you have to pay nothing as interest if you repay
the loan within a month. Again you save $15-$30 by not paying the loan interest.
•Ask your banker or a credit union for a short-term loan. The costs of these
loans are such that you can easily afford.
•Ask your employer to provide you with a portion of your salary as advance so
that you can cope up with your emergency bills.
•Consider in borrowing money from your friends or relatives. Actually for a time
lag of 1-2 weeks nobody will prefer not to provide you the money (I strongly
believe so!) unless you had a bad credit history with him or her. Thus you will
meet your money requirements with no interest charges at all! Also think about
the harassments if you can’t be able to repay the loan at specific date to the
payday lender!!
•Consider in making arrangements with your banker regarding withdrawal facility
from your checking A/c in order to protect yourself from making extra charges on
bounced checks. This facility costs you as little as $5.Sometimes no fee is
needed at all!
•When you shop for credit, check the APR and other official charges of different
credit offers. Thus you can avoid higher monthly charges with lower credit cost.
•Many social groups and communities provide urgent assistance either directly or
by various social services programmes. For example, I can mention “Federal low
income home emergency assistance programme” provides financial assistance to
families with lower income.
•There are several loan companies who offer $500 to $100 loan to active in duty
& retired military personnel. The APR of these military loans range from 34% to
40% which is 10 to 15 times cheaper than payday loan.
•There are also several Consumer finance companies that provide small consumer
loans at a low APR of 60%, which is also cheaper than payday loans.
Do the homework when you are about to borrow a payday loan. Look for low
interest payday loan. Gather all the knowledge about payday loan before
borrowing it.
About the Author:
Angelina Rosario is a contributing writer of http://www.ampmcash.com/ you are
invited to visit her site for the latest on payday loan news and information.
Also check the FAQ’s on payday loan at- http://www.ampmcash.com/faq/ - For more
detailed discussions on payday loan alternatives, visit http://www.ampmcash.com/loan-alternative.html
.If you have any problem or query regarding payday loan, join our discussion
board at http://www.ampmcash.com/talk/ |
