While payday loans are easy to obtain, they are quiet expensive when it comes to paying them back. Payday loans are considered one of the most expensive types of online financing. The interest rates imposed on payday loans are more expensive than those of conventional loans. There are multiple lenders to choose from but you may not always qualify for a payday loan. There are some alternatives you could take on to lessen the load on the repayment.
Borrow from family and friends
Close family and friends can provide you with an instant loan when you have a major financial emergency. An advantage of getting a fast loan from your family and friends is that they will give it to you immediately without major screening. The family and friends also do not impose any interest rates on the loan which means you will pay back only what you got.
Take an advance
Some companies have an advance option for their employees. If you work with a co-operation that allows it you should consider this before you even apply for the payday loan. An advanced salary is the perfect fast loan for someone who wants to do a quick fix on a financial emergency. If you have minimal commitments to your salary this is a smart loan option. The great thing about the cash advance is that you will not have to worry about making the payment back. The company deducts the advance amount at the next salary.
Use your credit card as a loan option
Credit cards are not easy to get, but their rates are much better when you compare them to payday loans. You have the freedom to apply for a credit card loan instead of a payday loan. It is a great loan option for non emergency situations. In the past, you could wait for a whole two weeks before you got the credit card loan but now it is as fast as 24 hours or less. Make sure you make the loan payments on time to maintain your credit card score.
Use your emergency funds
If the financial emergency is extremely urgent, you could dig into your emergency funds. Your savings can come in handy when such situations occur. You can use the money and replace it later. The good thing about digging into your savings is there is no repayments and interest imposed on the money.
Borrow from your insurance policy
This is where your retirement and life insurance policies come in handy. When you are faced with a financial emergency, you can take a loan from your insurance plans. While some loan lenders have not imposed a payment deadline on the loan, some have a plan for a fast and simple payment. They lenders deduct the cash from the benefits in case you do not make the payments on time. the insurance loan accumulates some interest and they are to be repaid together.
Payday loans are primarily meant for financial emergencies. If you do not need to take a payday loan, you should avoid them completely.