Considering a payday loan or cash advance? If you need a quick, reliable source of emergency cash, getting a cash advance or payday loan online may be the best option for you, particularly if you don’t have a good credit score.
But it’s not your only option. In this article, we’ll discuss your top alternatives to payday loans. Read on and see what options you have for short-term cash!
1. Turn to Your Savings
Ideally, you will have a “rainy day fund” with some extra money for unexpected expenses. This is one of the most important things you can do for your personal finances. It ensures that you avoid loan fees and gives you a bit more financial freedom.
But it’s not easy to save up, especially if you have kids, debt and other costs, so you may find that you don’t have enough in your savings. Unfortunately, only 39% of Americans can cover the costs of a $1,000 emergency out-of-pocket. So, what other options do you have?
2. Take out a Cash Advance Against Your Credit Card
You may be able to pay for some things, like a car repair or a medical bill, by using a credit card. Then, when you have more cash later on, you can pay down your debt. If you have an expense that requires you to pay in cash, you can take out a cash advance on your card.
Just be aware of the interest that you’ll have to pay on credit card debt – it adds up quickly, especially if you’re only making minimum monthly payments! Don’t have a credit card? Here are some other options.
3. Talk Directly to Your Creditor and Set up a Payment Plan
In many cases, you can negotiate a debt repayment plan directly with a hospital, an auto repair shop, or another such company to which you owe money. This allows you to break your debt into smaller, more manageable sums.
4. Ask Friends and Family for a Loan
If you’ve had no luck with the other above options, you can consider asking friends and family for money. However, money and healthy relationships don’t mix. If you can’t repay, or you run into other financial difficulties, you could potentially damage or ruin your relationship with a family member.
5. Consider Other Loan Alternatives
If you have reasonably good credit, you could take out an loan from a bank. If you own a home, a HELOC (Home Equity Line of Credit) will allow you to borrow against your home’s equity. If you have a 401(k)-retirement account, you could take out a 401(k) loan to cover your expenses. However, many of these options may not be available to you, especially if you’re already having trouble making ends meet.
Another option is to get a title loan on your car. You can use the equity in your vehicle as collateral for a loan, which may help you get a better rate, compared to a payday loan. To do this, however, you must own your car outright, and not owe any more money to the bank or lender.
Understand the Best Alternatives to Payday Loans – Are They Right for You?
If you need quick cash, a payday loan from an online lender like National Payday is often your best option. You can get the cash you need without collateral or a traditional credit check, cover your expenses, and get back to your normal, day-to-day life quickly.
However, all of these alternatives to payday loans are a reasonable choice, if they’re available to you. Most of the time, they’ll take longer to apply for and receive, but they could be right for your particular financial situation. So, explore your options, pick the one that’s right for you, and get the cash you need to get your finances back on track.