A study reveals that a typical a day loan customer pays $793 in fees on a $325 loan. Payday loans can be one of the most expensive options that the person can choose to come up with some extra needed money. There are other options that a person should consider first before considering to take out a payday loan.
Negotiating with creditors. If payment for your loans and credit cards is what putting you under financial duress anything speak and try to negotiate with your creditor. Your creditor may be able to help you by extending the date of payment and/or by agreeing to waver your late payment and finance charges. You may also agree to continue to report your account as current and active to the credit bureau.
You can also considering working overtime or on a second job if your employer allows you to do so. Getting a temporary job or working overtime temporary may help you offset the financial crisis that you are facing.
Instead of taking a payday loan from a person you can ask your employer to give you a payday advance. It is almost the same thing as a payday loan but without the high and excessive fees and the risk of falling into a roll over cycle.
Selling or pawning things that you no longer need.
Having a yard sale sale or selling the stuff that you do not need any more on eBay or craigslist can provide you with some extra cash is.
Adjust your tax withholding. Use the internal revenue services websites to calculate how much tax you should get withheld from your Paycheck. Getting more taxes withheld may put a strain on your finances every month while getting too little withheld may result in you owing taxes in April. Adjust the amount of tax withholding from your a check so that you getting just the right amount withdrawn from your Paycheck every month.
Cut down on expenses and bills. Cutting down on bills and expenses might help you save money that you did not know existed.
Look for local emergency hardship programs that will give you or loan you money to help you out. Contact your local department of human resources to find out if there are any emergency system programs in your area. If you also look for help with your local church or other humanitarian organisations such as the Salvation Army.
Take a loan from your bank or from a family or friend. If you have had a good relationship with your bank and have positive information on your credit file the new may qualify for a personal loan. Borrowing from family or friends can be a tricky situation because ideally you should not makes money with friendship. However if you are close enough to someone to ask for money you should take the loan seriously and be as serious about paying it back as you would be with a bank or a creditor.
The reason why payday loans still exist and do thriving business is because of the nature of borrowing. Borrowing against a payday loan is meant to be easy, quick and for a short period of time. If the person can successfully managed to repay the payday loan then it might not do much harm. But for a person who is facing financial difficulties and is using a payday loan as a means to deal with a financial crisis then there might be other alternatives which might seem more difficult to adopt but could well worth the trouble. Looking at other alternatives to payday loans will help the person avoid going downhill in action getting more and more debt and paying huge an astronomical sums of money as fee on the payday loans. Some of the alternatives to payday loan someone who is facing financial hardship are:
small loan from your bank or credit union.
Cash advance from your credit card.
Small loan from a family or friend.
Payday advance from your employer.
Hardship payment plan from your creditors.
Consumer credit counselling.
Emergency hardship programs that are typically offered by your state, County city’s human resource department.