Payday Loan Alternatives

Over the past few years, the number of people that are making use of payday loans in their time of financial need has risen sharply. Although payday loans are a fast and easy way to meet unexpected costs before your next wages arrive, the high interest rate attached to them makes it difficult for the majority of consumers to pay off and meet the financial demands of the month ahead. This often leads to a perpetual cycle in which the person who has borrowed the loan needs to borrow more cash, sending themselves further into a financial black hole. Fortunately, there are payday loan alternatives that everyone can try:

Borrowing money from family members

Although it may be difficult to ask your family and friends for a cash loan when you need it, doing so is a cheaper and more flexible alternative to using a pay day loan. Not only will you avoid high interest rates that reach over 1000 per cent, you will not have to worry about meeting a strict deadline for paying them back (and if you do struggle to meet the deadline they are more likely to give you a little more time). If you have family members or close friends that you believe will be willing to lend you the money, turning to them first may hurt your pride, but it will help your pocket.

Selling your unwanted items

Whether you have unwanted jewellery that you could pawn or sell, or items building up that could be sold on at a car boot sale, selling some of your stuff is one of the fastest and cheapest ways to accumulate some cash. Because of the recession a lot of people turn to car boot sales to buy the goods they otherwise could not afford. If you have junk lying around your house in the form of old clothes, CDs, DVDs, books, and games, you should book a pitch at your nearest car boot sale and sell them on. You could even find a friend that wants to do the same and share the costs of the pitch.

 Take on extra work

If you have a chance to do some overtime at work, then do it. The majority of workplaces pay more for overtime hours, which will help you to make some extra money. Alternatively, you could try and find an evening job. Many people now take on evening work in bars, delivering fast food, or working in call centres. By doing this, you will earn all or some of the extra cash you need to meet your financial demands, and once they have been met you will have extra to spend.

Regardless of the approach you take, there are lots of alternatives to payday loans that will allow you to meet unexpected financial commitments. Although they make take more effort, they are better for your financial future in the long run.