Making Sense Of Money

Payday Loans – Other Options

Payday Loans Other OptionsWho knows why these things only seem to happen at exactly the wrong time but it always seems to be the case – the car needs urgent expensive repairs, the heating system needs mending, emergency dental costs, unexpected vital travel costs, a huge mobile phone bill, a simple miscalculation in the monthly budget – so many things can happen that leave you short of cash at any time and a short term payday loan is the only option right???

Well, a payday loan is certainly one answer but it’s not the only option – there may be better solutions out there.

These payday loans with no credit checks allow you to borrow enough money to see you through until you’re next payday. Whilst the sums of cash you are able to borrow may not be huge the big benefit of these loans is the fact they are VERY fast and funds can usually be transferred to you the same day, they are then designed to be repaid, in full plus interest, on your next payday. Seems perfect in principle and explains why these loans are so popular, however, be very careful, interest rates can be very high and just think about what happens next month … will repaying the payday loan back in full leave you short again then and in need of another loan?

Other Loans

If this is likely to be the case it may be worth looking at instalment loans. There are a number of such loans available which, instead of insisting on repayment in full on payday, allow you to spread the repayments over a number of months. Again though, in the case of installment loans, keep an eye on interest rates as these kind of loans could prove an expensive option, especially if your credit history is not perfect!

We can’t stress how important it is to avoid falling into the paydays loans trap and, IF you really need that loan then consider all alternatives first – don’t just accept the first loan that’s offered. Also THINK … do I really need this loan?

Your Bank

Your bank is another obvious option – perhaps you should start there by talking to them, explaining exactly what your problem is and see what they can come up with. Maybe a flexible overdraft facility on your account would be a good solution or even a bank loan that may give you a better interest rate and improved, more manageable repayment terms.

When hit by such a financial crisis most people will automatically turn to a loan to provide the solution but you should always think very hard before taking out any form of finance and always try and find a better solution if there is one.

Your Employer

You’re looking for payday loans with no credit checks right? Well here’s the first obvious alternative … ask your employer for an advance on your next wage check … you never know but they may say yes and not charge you any interest.

Family & Friends

Another popular alternative that may be available to many of us is to borrow from close friends or family – again, this has the potential to avoid, or minimise, interest charges and giving you much more flexibility with repayment. OK, you may have to swallow a big gulp of pride in asking and you should only ask those who know and trust you and who you know can afford to lend you a little cash. If you do this though never let them down or take them for granted and make sure you pay them back exactly when you say you will.

Raise Money Without Borrowing

Perhaps though you shouldn’t, or don’t need to, borrow at all – what not sell something instead of taking out a loan and raise the money that way and these days it’s so easy to turn unwanted or unused items into cash and to do it fast. Everyone has such items knocking around and everything has a value to someone – those old CDs, DVDs, computers, laptops, all those previous mobile phone handsets, clothes, toys, gold, jewellery, pictures – just check around in those cupboards, the garage, the attic … you could be surprised in how much potential value you have.

Selling is easy, there’s the obvious online auction sites and also loads of national and regional online classified ads websites where you can sell anything for free or very cheaply. Selling this way is not usually instant and there’s no guarantee your item will sell or how quickly you’ll get paid so, if the cash need is urgent, what about those second hand or antique shops, those companies you see advertised everywhere wanting to pay cash for your gold, mobiles and such like or … how about a car boot sale … – fill the car, get up early, pay your £5 or so and sell, sell, sell. Great fun and really profitable – you’ll be amazed what sells and how much you can make in just a single day.

The State

Finally, if there’s a genuine emergency you may qualify for a crisis loan from one of the various charities who provide help for many different genuine emergencies such as meeting daily living expenses, board or lodging charges, pre-paid meter debt, emergency travel and more.

In the past you would have also been able to apply for a crisis loan from the state – this has now been discontinued but help may still be available in the form of a budgeting loan and additional help may be at hand from your local council in England, the Scottish Welfare Fund in Scotland and the Discretionary Assistance Fund in Wales. Find out more details at your local Jobcentre Plus.

Think Carefully

And there you have it, when you’re hit by a money problem, when you’re thinking that payday loans with no credit checks are the only answer, think again because there just may be a better way.

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