It’s really not hard to find alternatives to payday loans if you think creatively. When you consider the fact that you’ll be paying 25-50% interest on any money you borrow from a payday loan company, other solutions start looking very attractive.
First, decide if you have a true emergency. Perhaps your car has quit running and you can’t get to the shops, your work or go out for some fun. The only emergency here concerns getting work! See if you can get a ride with friends or co-workers until you save enough money to make repairs. If your water heater decides it’s too old to work, heat your water on the stove. Make do with what you have and see what favors you can seek from friends.
If you absolutely have to have money, look around your house and see if there is anything you can sell. One man’s junk is another man’s treasure and you may have several things that you can sell for the money you need. Take a trip to the jeweler’s and see if they will buy any of your better pieces. Look through your music collection and see what you can get from that, collect clothing you no longer wear, gather those dust collecting knick knacks and have a garage sale.
There are peer to peer lending communities on the internet that you can apply to for small loans if you have decent credit. In fact, it would be a good idea to find some of these before you encounter an emergency. Preparation is the best defense! You can also apply at your local credit union for a small loan as one of your alternatives to payday loans. They certainly charge more reasonable interest!
You can ask for overtime at your job or even take a second, part time job if you need money. Check the want ads and see if there are any companies in your area that can use your skills a few hours a day.
Other alternatives to payday loans depend on your creativity. Sometimes you can barter yourself out of a bad situation. In return for your neighbor’s skills in fixing your car or heating system you could look after his or her children or cook for them for a month. You may have a painting they’ve admired or tools they will take in trade for their services.
Pawn shops are also great alternatives to payday loans. You can do without your television, CD player, jewelry or even your computer for a time in order to deal with a financial emergency. Pawn shops do charge interest, of course, but it is reasonable and costs much less than a payday loan.
There are many alternatives to payday loans available to you if you can think creatively and take advantage of the assets you have. Of course, the best way to deal with a financial crisis is to be prepared with a savings account that you contribute to regularly. Saving a couple of pounds a week doesn’t sound like much but it adds up quickly and you’ll be glad to have it when you need it!
