Payday loans and other choices

The shops that sell these pricey financial products seem to be on every street corner and they make it pretty easy to borrow sums of money ranging from one hundred dollars to five hundred dollars on a whim. The price for a cash advance is exorbitant, with interest that can be as high as 1000% per year, but it is an easy way to come up with money in a pinch. The cash advance business is profitable right now, as many people struggle to get by from month to month.

While payday loans are convenient and easy to acquire, they are quite expensive when put side by side with other types of lending. There are some alternatives to quick cash loans that you might wish to consider when shopping for a short-term source of funds.

Payday loans can be somewhat hard to pay back and the stories of people who are paying as many as fifteen payday loans at a time are common. What if a person needs a speedy source of cash but doesn't want to take on the risks linked to quick cash lending products?
 

There may be a number of other alternatives available, and we will outline them below:

• Credit Union Loans - A few smaller credit unions are promoting short term loans that can replace payday loans.;; Credit unions have a tendency to offer more competitive rates than quick cash lenders; often well under 20% per year. Some may encourage you to seek professional counseling if you make frequent use of these temporary loans.;; More and more credit unions are beginning to provide small loans, so contact your local branch, as they might have a solution for you.
• Friends and family - If you take out a loan money from acquaintances or family, make sure that you pay it back or you may find yourself spending your time alone. Be cautious when obtaining funds from acquaintances; this is not a bridge that you want to burn. You may discover that family members can find a couple of hundred to assist you in a pinch.
• Bank card advances - Even if your credit history is less-than-ideal, you can possibly qualify for some kind of credit card, as there are many banks that specialize in providing charge cards to individuals with poor credit histories. It is worth the time and effort to find them. Credit card advances are easy to obtain; if you obtain a personal identification number, or PIN, you can acquire the money from any nearby Automatic teller machine. The interest rates are higher for cash advances than for purchases; they typically average about 30% annually. A lot of credit cards will allow cash advances.
• Employers - Paycheck advances would amount to an interest-free loan, should your boss be able to help you out. You likely cannot make a practice of borrowing against a coming paycheck, but your employer might be willing to help you out on an one time basis. Some employers will grant infrequent advances to staff.

These are just a few options at your disposal to individuals who have a temporary need for some fast cash. While the variety of these choices will vary from person to person, all will be more affordable alternatives than the four hundred percent (or more) money that you will find at your nearby high priced lending store.