Spending more than you earn will definitely lead to financial troubles. If you prefer to solve these troubles with the help of payday loans it may turn out to be a risky adventure for you. Very often payday loan providers take advantage of your desperate situation and may get you in debts. The vivid disadvantage of payday loan is that it is very expensive. The APR of a payday loan differs from 400% to 800% which is much higher than any loan presupposes. That is why it is worth to look for any possible alternative before making up your mind on applying for a payday loan.
So instead of applying for a payday loan the following option are at your review:
Use your credit card to make some urgent payments. You will save $20-$30 by not paying the payday loan interest, credit card interest is very low compared to a payday loan’s and if you pay it back within a month you don’t have to pay anything.
Ask your creditor to wait till your next payday, giving you this favour they will help to avoid borrowing the money and will save you $20-$30 by not paying the payday loan interest.
Go to your banker or to your credit union and ask for a short-term loan, this way you have the money for the costs of this kind of loan without any difficulties.
If you are about to apply for a payday loan this is a signal you are not so good at your financial planning. It’s worth to start your month with preparing a realistic budget, that will help you to keep the financial balance , try to save money every month, do not buy unnecessary thing .
If you come across emergency bills ask your chief to give you a part of your salary in advance.
Consider getting money from your family members or friends. If they have some extra money there’s little possible they will refuse. This way you will cover your unexpected expenses without interest charges.
Try to make some agreements with your banker about withdrawal facility from you bank account to avoid some extra fees on bounced checks. This option may cost you $5 or may cost you nothing at all.
Whenever you look for a credit, always check the APR and other fees of various credit offers, make the best choice with smallest monthly charges.
There are many communities and social groups that give you urgent assistance directly or by different social services programs, have a look at them and you will probably get a great help.
There are some loan providers who offer payday loans to military and retired military personnel. The interest rate there is 10 to 15 times lower than interest rate of a regular payday loan because the APR of military payday loans varies from 34% to 40%.
There are some Consumer finance companies that lend the money with the APR of 60%, which is cheaper than a payday loan.
Before getting a payday loan do some research, gather as much information as possible before applying for one.