Here are some alternatives to payday loans

Getting a payday loan is easy and convenient but it has its repercussions. The interest rates on payday loans are absolutely high, and making late payments can cost you your credit ratings and future bank loans in the long run.

If you do not find it necessary to get a payday loans, here are some alternatives you can chose from

Credit cards

Credit cards may not be easy to get, but they pose much less risk to your finances compared to payday loans.  When you apply for a credit card, you can get one approved within two weeks.  The only drawback about credit services is that some companies have restrictions on how you can use your credit card. If you make credit card repayments early, you can avoid a bad credit report. You want to avoid bad reports because they will mess with your chances of getting bigger loans or better credit cards.

Logbook loans

Logbook loans will help you get access quick funds if your payday loans have been rejected.  You get a loan and use your logbook as collateral. You can still use the logbook as your own, but once you fail to make the loan repayments the lender has every right to claim your car.  Logbook loans do not expire as fast as payday loans, you will have enough time and finances to pay this loan back.

Family and friends’

This is the fastest way to ask for a interest free and timeless loans. Your family and friends are more likely to hand you a loan without asking too many questions or adding an interest rate to the money. You can pay them back whenever you regain your finances, without the pressure and fear of losing more money.  They can wait patiently for the repayment once you explain your situation to them

Asking for an advance from work

If you find yourself in a financial crisis in the middle of the month, you can take up an advance from your workplace. Taking an advance is just like dipping into your salary before you get your full monthly income. It is a good way to supplement for payday loans; you won’t have to pay anyone back and there are no interest rates involved in any way. The only problems you will have to face is getting only part of your income when end month arrives.

You can borrow from your life insurance policy

Most people do not know that they can take loans from life insurance policies and their retirement benefits. The best thing about this loan is that it has no deadline. If you fail to make the repayments, the amount is subtracted from your insurance and death benefits. Don’t borrow large amounts from your insurance policy, they will accumulate large interests.

Creating an emergency fund or savings

You can set aside some cash for financial emergencies. Do this by creating a locked savings account that you can only open when there are emergencies. The best thing about having savings is that the money belongs to you and will not have accumulated interest when you borrow from your account

Final word

In case you are going through a financial emergency that requires immediate attention, you can always borrow from a payday lender as long as you don’t make it and everyday thing!


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