“Get the fast cash you need by applying for a payday loan today!”
Taking out a payday loan might be the first thing in mind if you find yourself in dire need of financial aid. They’re fast and accessible. Just look up on the internet and you’ll get to choose from a number of online quick cash lenders. They’re also made for small amounts and you repay your small loan by the time you already have money, usually during your payday.
Okay, that sounds attractive but what’s the catch?
The other side of the coin is payday loans have high-interest and additional fees, which can drag you into further financial frustration if you’re not careful. You’re likely to cut back on expenses, delay paying some bills and generate more penalties and charges, or even sell personal, important possessions to pay back.
Not all payday lenders are bad as there are reputable and regulated ones. However, a number of unscrupulous lenders trap cash-strapped consumers, especially those with bad credit, who feel like they have no other choice. But the truth is, they have. So before you pull the trigger on one of these predatory practices you might want to consider zero to low-interest alternative options.
1. Negotiate a payment plan with creditor
Are you having trouble with your monthly bills? Do you need an extension? Give negotiating with your creditor or utility a shot. Before seeking other means for your cash shortfall, you might want to discuss it with your creditor first.
Call them ASAP and ask for more time. They might give you an extension without charging late fees. And even if they do, they are often smaller compared to the interest rate on payday loans.
2. Use credit cards
If you have a financial emergency and you have no long-term debt, I suggest using a credit card instead. Credit cards should be used prudently for purchases and even cash withdrawals. Just don’t be tempted to spend more than you can afford and make sure you pay back in full or as much as you can.
Although they have a higher interest rate than other cards, credit cards will still be cheaper than a payday loan as long as you repay all or most of your balance each month.
3. Take out a credit union loan
A credit union is a member-owned financial cooperative, managed on the principle of people helping people. Credit unions offer small, short-term loans for emergency situations at competitive rates to help their members get back on their feet.
Though the loans have interest fees, they are low and are much more affordable than payday loans and even from the ones from traditional banks. Their approval process is also often more flexible.
4. Ask for an advance on your paycheck
You have been dedicated to the company since day one and I’m pretty sure asking your employer for an advance on your salary wouldn’t hurt.
The good thing about this is you wouldn’t worry that you have to repay a loan with interest fee – it’s your money after all. Just make sure you don’t do this habitually, or you’ll damage your reputation and fall into the terrible paycheck to paycheck lifestyle.
5. Ask for an overtime pay
Make it known to your boss that when they need people to take on more hours, you’ll gladly work. Who knows? Showing enthusiasm for overtime work might even land you a promotion or a raise.
6. Sell off possessions you don’t use
Sometimes one has to suffer financial strain before learning the value of money. Look around your house. There might be hidden income lurking inside your closets, such as the rarely used clothes you bought out of boredom, good-as-new baby shoes your kids have outgrown, and some pieces of jewelry you don’t normally use. Use eBay, Craigslist, advertise them on your social media pages, or organize a garage sale.
7. Take odd jobs
Babysit (or pet sit) for friends. Walk dogs. Offer to mow the grass for your neighbors. Wash cars. Repair electronics. You may charge for these tasks and scrape together for a few hundred bucks in just a week You can sign up for these jobs through websites like Craigslist.
8. Make profit out of your hobby
Are you a mad artist? Do you paint? Do you love making jewelry or making knitted hats and scarves? Do you enjoy home improvement? Are you an aspiring photographer and are interested in becoming a freelancer?
These are all marketable hobbies, which are a great way to earn extra income. And who knows? You might make a successful business or career out of something you only do for fun.
Author Bio:Carmina Natividad is a resident writer for QuickCash, an Australian-based business, providing short-term cash loans for your borrowing needs. She is passionate about writing articles regarding personal finance, money hacks, and responsible borrowing tips.
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