Payday loans are an expensive loan to take out but they do serve a purpose. They are one of the only;y loans that just about anybody can get and get in short notice. Try to find another loan type that will approve someone with poor credit and you will have a hard time. Still, even though they are useful, one should only use a payday loan as a last resort. If you have other funding options, you may be better served to use them. Here are some potential sources of money that you should give thought to before signing a payday loan.
- A Bank Loan
If you have decent credit, you might be able to go the traditional bank loan route. Have a home with equity? Perhaps you can get a line of credit from your bank.
- Money From Your Savings
Trying to keep money in savings for an absolute emergency. Well if you are looking at a payday loan, you are in an actual emergency so pull out the savings money and then repay it in two weeks just like you would a payday loan.
- Credit Card Limit Increase
Call your credit card companies and ask for a limit increase. If you have been paying well and you explain your situation, you may be surprised.
- A Loan From Family Or Friends
It can be embarrassing to ask for help but it beats paying high fees. Just be sure that you pay the loan back promptly to avoid irritating anyone.
- Open A New Credit Card
Open a new account and pay it off when the bill comes. Then just close it and you get a free loan essentially.
- Garage Sale
Everyone has junk they do not need and you might have enough to get you out of your trouble. An impromptu garage sale can often raise a few hundred dollars if you have decent junk or a few high ticket items like washing machines.
- Ask Your Boss For An Advance
Just about as bad as asking a friend but you have probably already earned the money so it is no risk for them. It does the same thing as a payday loan without the fees.
- Military Loan Programs
Are you active military? There are probably some programs out there just for you.