Most people who consider taking out a payday loan forget that there are many alternatives to doing so. Why consider alternatives? You should consider alternatives because while there are many benefits to taking out payday loans, there are also many drawbacks. For instance many say that payday loan lenders are profiting off of the poor and the young. With such negative media like that on the market, you may want to do two things. First, you may want to research the actual positives and negatives of taking out a payday loan. Weigh out those negatives and positives for yourself. Then, see what other alternatives are out there. Here are some of those alternatives.
Get an advance from your employer
Many companies offer cash advances for their employees. If you work for a company and you're feeling lucky on a given day, go right on up to your manager and ask him or her for a cash advance. You may actually end up paying little or no interest.
Get a loan from your relatives
It's very likely that your relatives will have more sympathy for your situation than payday loan lenders. They can give you a loan, and all of you can work out a deal on what the interest will be. This is very much in contrast to how payday loan interest works. Payday loan interest fees are non-negotiable. However, a relative may not even charge you interest. And if it should happen that you have a difficult time paying off your debt, a family member will be less likely to sneak into your checking account to get money for late fees.
Apply for a small loan
If your credit isn't too bad, you should think about applying for an average small loan. You may be surprised at the interest break you'll get. Payday loans might be small loans because you borrow them for two-week periods, but there are a lot of differences between payday loans and traditional small loans. Traditional small loans often come from someone you know and trust, like your bank lender. On the other hand, most people don't know who their payday loan lender is.
Negotiate a payment
It may be easier than you think to negotiate a payment with a creditor. It doesn't even take much courage to ask for some kind of payment arrangement. That's because people do it all the time. Before you get a payday loan, think about giving your creditor a call. It's advantageous for the creditor to work something out with you for a couple of reasons. For one, when debts are sent to a collection agency, the creditor only gets a small portion of the payment. Most of what's collected goes to the agency. That means a creditor should be more than willing to make sure it gets its money directly from you and not through a collection agency. So go ahead. Give your creditors a phone call.
After considering all of the above alternatives, you might want to try a payday loan. But be very careful.
