Finance & Insurance

5 Best Alternatives to Getting an Online Payday Loan

If you’re ever in need of quick cash to sort out an urgent expense, obtaining an online payday loan may provide an effective solution. These loans have many perks. For instance, it’s easy to qualify for a payday loan and the funds are released to your account within 24 hours or less of application. You can get incredible payday loans from revered companies such as those available at Times Union.

Despite the numerous benefits provided by payday loans, they have a few drawbacks that make them undesirable for some people. For instance, they’re quite expensive: some lenders charge ridiculously high-interest rates upwards of 1000% APR. Some people also consider payday loans to be predatory in nature, meaning that they target low-income folks who may struggle to repay them.

Why Might You Need to Get an Alternative to Payday Loans?

If you have a payday loan that you’re currently servicing, then you may struggle to attain a similar loan. In addition, getting an alternative source of funding will prevent you from paying off expensive monthly loan installments. You’ll also feel financially liberated once you find better ways to resolve your monetary issues.

Here are 5 Alternatives to Getting an Online Payday Loan:

1. Create a Solid Payment Schedule

We’ve all experienced a financial crunch at one point or another. Finding effective ways of repaying your existing bills could provide some relief and prevent you from taking a payday loan. If you’ve maxed out your credit card and are worried about how you’ll clear the accrued bill, simply discuss the issue with your credit card company. Create a realistic plan detailing how you could repay your creditors. For instance, you could request them to lower the interest rates charged on your different loans. 

A stitch in time saves nine. If you’ve developed a friendly rapport with your creditors, they’ll be willing to adjust your repayment terms accordingly.

2. Request for a Paycheck Advance

Employees who have worked at the same firm for many years are ideal candidates for salary advances. However, your relationship with the boss and HR executives will determine whether you’ll get the advance. Sure, you probably won’t get as much as you’d hoped for, but at least you won’t need to worry about paying hefty interest fees. However, it might be a smart idea to forego this option if you’re new to the job.

3. Opt for a Debt Consolidation Loan

Another viable alternative to taking out an online payday loan is getting a debt consolidation loan. This loan type is especially suitable for people who have trouble keeping up with their numerous debt repayments. Once you qualify for a debt consolidation loan, you can use it to pay off all those smaller loans in full. This leaves you with one single loan that’s easier to manage. The beauty of this particular loan is its friendly repayment terms and relatively low-interest rates. However, it’s important to compare the terms offered by different lenders before making up your mind.

4. Consider Peer-to-Peer Lending Facilities

In this modern age, you’re not limited to requesting loans from banks and financial institutions. Certain P2P lending firms allow you to borrow money from other individuals. The benefits of this type of lending are too many to count. For instance, you get to deal with a single person rather than an entire organization, which makes it easier to secure a loan with reasonable terms. There are many crowdlending platforms online that connect borrowers to moneyed individuals who only need a little persuasion to provide remarkable loans. However, you’ll need to write a convincing proposal explaining why you need the loan and how you intend to pay it back.

5. Find a Credit Counselor

If you’re unable to manage your finances wisely, it might help to get professional help. Most banks provide free credit counseling services to their clients. Therefore, visit them and talk about all the issues affecting your cash. They’ll quickly diagnose the issue and advise you on how to handle your money issues. For instance, your credit counselor could help you come up with a plan to cut down all needless expenditures and pay off any existing debts. Their insights will provide helpful clues on how to create a sound budget and savings plan.

Bottomline

Getting an online payday loan can help you acquire the funds you need to pay tuition fees, settle outstanding bills or simply buy groceries for the house. However, the alternatives discussed above should come in handy whenever you’re looking for other sources of money.

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