Considering a Payday Loan? Tap These Alternatives First

Considering a Payday Loan? Tap These Alternatives First

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There are numerous payday companies readily offering their services to interested clients. Accessing them is easy. This can be done at the comfort of your seat, thanks to the rapid technological advancement in the financial sector.

How Payday Loans In Waterloo, Kitchener, Windsor, Chatham & London Trap You

However, due to high-interest rates and short repayment periods, taking these loans should not be your first option.

Here are alternative payday loan options you can think about:

1. Advance Payment

An advance payment comes in handy when you need emergency financial assistance. Usually, if you have been working at a particular company for some years, approaching your employer with a request may not be so difficult. Table your facts and let your boss decide if the company can issue you an advance paycheck.

If your application is approved, you are advantaged since you may get the same amount as the payday loans companies would have offered you, but at no interest. This option is highly recommended to those who have been at their current job for a reasonable time and not those just starting or with less working time. You may visit this list of online payday lenders for more options for getting a payday loan.

2. Local Charity

You may be going through a rough time, with financial needs pressing you to the wall. Before applying for a payday loan, which you may have no idea how to pay back, you should consider pointing out your needs to a local charity such as your church. Although most people may be shy to make this move, a local charity is a good source of financial assistance.

Most probably, all churches set aside funds for community outreach. You can use this money to contribute to a member’s medical bills, groceries, and other necessities. For some churches, you don’t have to be a member to access this assistance since they cater to everyone in need, including non-members.

Usually, churches offering such charity programs do not expect a payment, so you are sorted and given a foothold to continue from. With payday loan companies such as Viva Payday Loans, where you can apply for $5000 loan no credit check, you have to make necessary repayments with interest at the set time. Therefore, the local charity is an excellent place to start.

3. Payment Plan

Most companies are flexible with their payment plans and can always negotiate with their customers to adjust their initial plans. You may find yourself behind on some bills such as car payments and electricity bills. Contacting the concerned companies with the issue is a step worth considering since you are most likely to come up with a new payment arrangement rather than taking a quick payday loan which will accrue interest before your next payday.

For instance, depending on your arrangement, a company may agree to a new payment plan and let you skip one month and forward that payment to a given time. Such actions regarding payment plans are not often included in public reference points, so you just have to inquire and be enlightened.

4. Peer-to-Peer Lending

Acquiring a loan from traditional financial institutions may be difficult, prompting you to take payday loans. Before you proceed, you should consider peer-to-peer lending, which is simply a way of getting loans from other individuals.

You first need to avail your proposal to them; if your proposal is appealing or convincing, your loan will be approved and set for repayment with interest. The interest may also be slightly higher than the banks’ but will not be as outrageous as payday loans. It is more of an agreement you come to, and no one is forced to accept the options and terms on the table.

5. Side Hustle

To sort out your financial needs, borrowing money may not always be the ideal solution. If you have extra time, you can dedicate part of it to a side hustle such as lawn mowing during weekends or renting out your car when you don’t need it. After some time, you might just get enough cash to cater to pressing needs and save some for future use.

Bottom Line

You should not always think about taking payday loans at the slightest need of money. Planning for unforeseeable emergencies will keep your budget in order and protect you from financial frustration.

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Written by

Alexander Sterling

Alexander Sterling

Alexander Sterling is a renowned financial writer with over 10 years in the finance sector. With a strong economics background, he simplifies complex financial topics for a wide audience. Alexander contributes to top financial platforms and is working on his first book to promote financial independence.

Reviewed By

Judith

Judith

Judith Harvey is a seasoned finance editor with over two decades of experience in the financial journalism industry. Her analytical skills and keen insight into market trends quickly made her a sought-after expert in financial reporting.