An alternative way to avoid payroll loans
Windowofworld.com – If you regularly spend more than you earn, it is bad practice. To solve this situation, if you choose payday loans, it will be a risky solution. Payday loan companies often take advantage of your needs and lead you into a debt trap.
The most obvious disadvantage of payroll loans is their high fees. The APR of salary loans varies from 400% to 800%. Think about your investment even in high interest stocks, you can get an annual return of 20% to 30% for investing in a stock even though investing in stocks is considered high risk.
So, consider about all possible alternative ways before choosing a payday loan advance.
The daily payday loan situation arises because of poor financial planning. I recommend that you prepare a realistic budget at the beginning of each month to maintain a balance between your income and expenses. Avoid unnecessary purchases. Also save money every month. Your savings will be calculated in times of crisis. Consider asking for help from a consumer credit counseling agency.
Ask your creditors to help you by waiting until your next payday. If you can arrange for them to do so, you will not need to borrow the loan and thus you can save 15-30 USD by paying no interest on the loan!
Use your credit card for urgent payments. Usually the interest rates on credit card loans are very low; You don’t even have to pay interest if you pay off the loan within one month. Again you save $ 15- $ 30 by paying no interest on the loan.
Ask your banker or credit union for short term loans. The cost of this loan is such that you can easily buy it.
Ask your employer to give you a portion of your salary as a down payment so you can cover your emergency bill.
Consider borrowing money from your friends or relatives. In fact, for a gap of 1-2 weeks no one will choose not to give you money (I’m pretty sure you do!) Unless you have a bad credit history with it. That way you will meet your cash needs without any interest costs! Also think about harassment if you can’t pay back the loan by a certain date to the payday lender !!
Consider making arrangements with your banker regarding a withdrawal facility from checking your A / c to protect yourself from making extra charges on bounce checks. This facility costs only $ 5. Sometimes it costs nothing at all!
When you shop for credit, check the APR and other official fees of different credit offers. Thus you can avoid higher monthly fees with lower credit costs.
Many social groups and communities provide urgent assistance either directly or through various social service programs. For example, I could mention the Federal low-income home emergency assistance program provides financial assistance to low-income families.
There are several loan companies that offer $ 500 to $ 100 loans for active & retired military personnel. The APR of these military loans ranges from 34% to 40% which is 10 to 15 times cheaper than payroll loans.
There are also several consumer finance companies that provide small consumer loans with a low APR of 60%, which are also cheaper than payroll loans.
Do homework when you are going to borrow a payroll loan. Look for low-interest payday loans. Gather all knowledge about payday loans before borrowing them.