Many people think that there are more storefronts or online payday lenders as compared to well-known food and coffee joints like Starbucks and KFCs operating throughout the United States, frequently known as the Land of Opportunities.
Way back in the year 2016, the payday lending industry was already an 89 billion USD worth industry. Despite its popularity, it is one of the ideal ways to fall into debt.
You will hardly find any US private bank that will offer payday loans without checking your credit score or going through your credit report, which indicates your financial stability and ability to repay the loans.
It is because when you are cash strapped, you resort to these instant loans, but if you are not able to repay the loan within the repayment period, you take another loan to pay off the previous one, and this is a vicious cycle that seemingly has no end.
You tend to pay off the loans because the APR or Annual Percentage Rate of these loans is very high and can sometimes skyrocket to 400% also.
However, these days, you will find there are many other alternatives to this risky financial aid, which does bail you out initially.
In this article, let us find out what are the other options that you can explore if you want to steer clear of these payday loans or quick cash advances.
What alternatives can make you skip the payday loans?
Check out in the paragraphs that follow.
- Negotiation might help
Let us say; you have a few loan accounts that have to be closed or paid off. And it is still better if it is from a single lender. In that case, you can talk to the lender and try to negotiate the amount manifesting your financial distress and if he could allow you to pay a little less than what you owe and make the reimbursements as monthly payments instead of pay it all at once.
- Online personal loans
Is an excellent alternative to payday loans. Unlike a couple of years ago when you had to wait for at least a week before you would get the money transferred to your bank account, with the advent of online personal loans, you can get access to instant cash and within a short time.
In this regard, you can always refer to OnlineCreditUSA.com for expert advice. Service providers like them are known to offer quality financial services to innumerable satisfied clients.
- Borrow from friends and peers
If you have the opportunity, you can always seek some financial help from your friends and family. You will come across many such instances when your friends and peers request monetary from your family too. The most significant benefit of appropriating financial assistance from them is that you can avoid paying the interest, which can be quite a sizeable amount depending on the amount you need.
- Using a credit card makes sense
As compared to paying high APR on payday loans, shelling out some interest on your credit card is still better. You can use the plastic card to meet emergency financial crisis.
However using the credit card for making virtual payments does make sense he, but if you are planning to take a credit card cash advance, it is not a very good idea. It is because you will have to pay a higher rate of interest on taking out cash advance as compared to using the card for virtual payments at any POS.
As such, whenever it is possible, make sure that you steer clear of payday loans so that you do not get into further debt.
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