Alternatives to Payday Loans

by : Nick Cox

A payday loan can be an effective way to deal with an unexpected cash shortfall. However, payday loans are not suitable for everyone, it's therefore important to be aware of the alternatives that are available to you. Being aware of the alternatives means you are able to make more of an informed decision. This decreases the chances of you making a wrong decision that could ultimately lead to worsening your financial situation.

Credit cards
A credit card that is used wisely can be of great benefit when you are experiencing a cash flow problem. Unlike payday loans, a credit card can be paid back over a period of months. The interest you pay on the credit card will also be far less than the amount you will be charged on a payday loan. To avoid accumulating more debt, exercise restraint when using your credit card, by only using it to purchase items that are absolutely essential.

Family members
It may be a bit of a sensitive subject, but borrowing money from a family member can be an ideal solution to a short term cash problem. So long as you're borrowing a relatively small amount and you pay back what you lend, then this can be a cheap and hassle free loans solution.

Help yourself
Be smart with your finances to avoid future situations that force you to take out credit. While you should always spend some money on enjoying yourself, it is more important to deal with business matters first.