Do you need to get your hands on money in a hurry prior to your next paycheck? Then you might be thinking about taking out a payday loan.
The only problem is that payday loans typically come with very high-interest rates attached to them. It’ll make it very hard for you to pay back a loan in a reasonable amount of time.
Fortunately, there are some great payday loan alternatives that you can also consider. These alternatives to payday loans will make it a little easier for you to get back on your feet by paying them off.
Take a look at three payday loan alternatives that you should definitely consider below.
1. Ask a Family Member or Friend for a Short-Term Loan
Generally speaking, borrowing money from family members or friends is usually not a great idea. A good rule to live by is don’t lend to family or friends. But that hasn’t stopped millions of Americans from doing it anyway!
About 60% of people admit to lending money to a family member or friend at some point.
If you’re hard up for cash right now, you may want to consider reaching out to someone you trust to ask them if they can lend you some money. Just make sure you put a repayment plan into place to avoid ruining your relationship with them over money.
2. Try to Secure a Personal Loan
If you don’t feel comfortable borrowing money from a family member or friend or if you can’t find anyone to float you a loan, a personal loan is going to be your next best bet. There are lots of types of personal loans that you might be able to qualify for.
There are some things to consider when applying for a personal loan, such as what your credit score is and how long you’re going to need to repay a loan. But as long as you consider them, a personal loan will prove to be one of your best payday loan alternatives.
3. Use a Credit Card
Do you have a credit card in your wallet? It might be a good tool for you to use when you’re in a bind and need to pay for something but don’t have any money in your checking account.
While you shouldn’t get into the habit of using a credit card to bail yourself out all the time, using one in emergency situations shouldn’t be a problem. You should, however, avoid swiping a credit card that has a very high-interest rate on it. It’ll be almost as bad for you as the average payday loan.
These Payday Loan Alternatives Could All Work Wonders for You
Payday loans aren’t your only option when you need to get cash quickly. As you’ve seen, these three payday loan alternatives can also help you out.
Give one of them a try the next time you’re in need of cash. They’ll provide you with the funds that you need and allow you to repay a loan quicker than you would be able to otherwise in most instances.
Find more personal finance tips and tricks by checking out the other articles on our blog.