I am sure you have heard praises about payday loans and how they are easy to get. What people do not tell you is that they are expensive to pay back. The truth is that payday loans are the most expensive online finances and could lead to future financial risks. The interest rates on payday loans are higher than those of any conventional loans. Some people easily qualify for a payday loans but it is not always the case for everyone. What do you do when you fail to qualify for a payday loans and you are in serious financial needs?
Dig into the emergency funds
Saving your money can come in handy in multiple ways. The good thing about having a savings account is that it is accessible to you at any time. During an unplanned financial situation, you can take out the money you need and replace it later. The great thing about this is that there is no pressure to pay the money back and there is no interest rate imposed.
Borrow the cash from your family and friends
Close friends and family are always willing to provide you with the amount you need for the loan instantly, especially if you are facing a financial emergency. One major advantage of getting a loan from friends and family is that they will disperse the loan immediately without too much screening on their parts. You will also get away with paying the money back with no interest imposed on the loan.
Asking for a credit card cam be a great loan option
Your credit card is actually a great loan option when you think about it. Even though credit cards are hard to attain, they are less risky when compared to payday loans. You could apply for a credit card loan instead of taking the payday loan. It is a great loan option if you are not facing a financial emergency that requires immediate attention. Due to technological development, you can receive the loan within a day or two.
You can ask for an advance from work
Many companies offer an advance for their employees. Find out if your company gives out an advance salary and use that as a loan option. Taking an advance is a great option if you have minimal loan commitments to your monthly salary. One advantage of taking an advance salary is that you will not need to pay it back. The company deducts the amount you took in advance at your next salary. As long as you use the money for financial emergency, you will not need to ask for another advance.
Borrow from your insurance policy
This is where your savings in a life insurance and retirement policy come in handy. Many lenders allow you to take a loan from your plan. Some lenders do not have a short payment restriction period, which makes it a better option than payday loans. the lender can deduct the loans from your benefits if you fail to make the payments.