The Alternatives To A Payday Loan

Payday loans – or cash advances – are a short-term solution that could help you out financially while you are waiting for your next pay check.

There are certainly a number of advantages to applying for a payday loan – especially if you urgently need to pay a bill – as most lenders will be able to supply you with the small cash injection within 24 hours of completing an online form.

As these types of cash advances are only a short-term procedure, lenders will require a quick turnaround in payment – which is added to by a rate of interest set by the company - that usually lasts for around a month.

However, before applying for a payday loan it is important to consider the cheaper alternatives. Listed below are some of the methods you could use to avoid claiming for a cash advance.

Overtime/More work

If you are in an existing job, there is no harm in asking to do some more hours to help increase your pay packet. If not, a part-time job that could be done at the weekend or evenings could well be the answer.

Enquire about a payday advance

If you are under pressure to pay a bill, you could ask for a payday advance from your employer. Simply explain your situation to the relevant person in authority within your workplace and they may be able to help you out with an early payment of your wage. However, don’t expect to receive the full amount if you have not worked all of the proposed hours in the set time-frame.

Contact your bank in order to take out a small loan

Interest rates from your bank are likely to be much more competitive and affordable than cash advances. This way, you can apply for a small personal loan –as long as you can prove a steady income – which will have better terms than a typical payday lender.

Sell your valuable items

If you have no use for some valuable items in your household there is nothing stopping you from selling them in order to make ends meet. There is a certain online auctioning site (mentioning no names!) that allows you to set a beginning and end date to your sale so that you can quickly despatch of your unwanted goods. Alternatively, you could sell your items to friends or family.

Lend money

If all else fails, you can always politely ask to lend money from close members of your friends or family. If they trust you enough, they could be willing to help you out. If they do, make sure you are eternally grateful and can pay back the money as soon as possible.