Payday Loan Alternatives

Overview

A payday loan as enticing as it may seem in the moment. To receive that emergency cash that you need to tide you over until payday. But a payday loan is really a short-term, high interest loan that can trap you in a cycle of debt.

But hang on there has to be better alternatives to payday loans, explore other options. Such as borrowing from friends and family, asking your boss for an advance or even using a pawnshop.

All options that further prove that cash-strapped consumers may have more choices than they realise.

A payday loan can really be a last resort if you can borrow money by opening a home equity loan or borrowing from a retirement account. But if those options are too far-fetched for you, you can always sell clothing or household goods on OLX. Or have any emergency savings as every little bit you put away in a savings account acts as a financial cushion.

Get a side job if you’ve a hobby or skill that’s in demand such as baking cakes offer your services to people in exchange for money. Or if you’ve a credit card with available credit, use it to fund the purchase rather than taking out a payday loan. But don’t make it a habit,

How does a payday loan lead borrowers into a long term debt trap it’s a cycle that piles on fees and interest, making it harder to dig out. And how can this be its because consumers who turn to payday loans many have limited access to credit, or don’t have a bank account.