Life does have a habit of throwing curveballs at us. Everything feels perfect one minute, and the next, you need quick cash to cover some expenses or just something to get by till your next paycheck.
At this point, getting a payday loan may seem enticing. Plus, it has become difficult to walk by and not see a payday loan cash store. But as enticing as the payday loan offer may sound, it’s never your best option for quick cash.
If you need help with avoiding the payday loan cycle, you’re in luck! Payday loans only offer an unending cycle of debt you may not be able to get out from in a while. But thankfully, there are better options other than payday loans.
Today, I will be showing you better alternatives to get the cash you need without getting stuck in the payday loan debt.
Let’s get started!
4 Ways you can Avoid the Payday Loan Cycle?
Payday loans may seem like consolidations as they come in the nick of time, but they are not. Thankfully, there are better alternatives to payday loans. If you’re in a financial mess and you need a way out, you could try these options discussed below:
#1. Contact your Family and Friends
As they’ll say, “home is where the heart is.” If you have any issues, try to speak with your family first. An honest conversation may do the trick. If you need cash to pass by, surely you’re not alone. However, while speaking with your family, be sure you request a loan you can pay back.
#2. Try Payday Alternative Loans
If you must borrow money, you could try other creditors. Other credit unions loan out cash with APRs no higher than 28%, no application fee higher than $20, and, more importantly, no outrageous additional charge.
Compared to payday loans, these credit unions give you ample time—say 4-6 months- to pay back the loan you borrowed.
#3. Have an Emergency Fund
The importance of an emergency fund can never be overemphasized. Given the opportunity, you will want to avoid payday loans as much as possible. But sometimes, your credit score is low, and you need quick cash. This is where an emergency fund comes in.
Although, it may take a while to build a healthy emergency fund. But your consistent 10-20% every month can go a long way. Plus, you’d be surprised what your seemingly small emergency fund could solve when you’re in a fix.
#4. Request for a Paycheck Advance
Depending on where you work and the relationship you can build with your employer, you may get a paycheck advance with no extra charge on request.
However, deciding whether or not to give out a paycheck advance is up to your company’s discretion. So you could try speaking with anyone in the human resource or probably your supervisor.
Conclusion
Do not beat yourself up if you ever find out that you’re in a financial mess. It can happen to anyone. But if you ever find yourself in a fix, never settle for payday loans. You could try out these options discussed above. As much as payday loans relieve you of the need for quick cash, still, it’s a trap to get you into debt. Please do not consider it!
