The need for fast cash is common in our society. Whether itâ€™s a vehicle repair, a speeding ticket, or medicine for a sick family member, we all have those times when we could use an extra few dollars-or a few hundred.
For quite a few years, many people have been turning to payday loan providers. The customers seem fairly satisfied with the outcome, but the truth is that their situation is causing them to make reckless decisions that are more costly than they have to be.
The truth is that there areÂ fast payday loan alternatives that can solve those sudden emergencies without getting you tangled up in a mess of paperwork, constant visits to the office, and astronomical fees and interest.
In the interest of full disclosure, weâ€™ll point out that alternative loans are still more expensive than old-fashioned bank loans. But borrowers who need to go this route find that the added cost is worth what it gets you. Consider some of the advantages of these loans that make them a good option in spite of their higher cost. A common threat youâ€™ll find is that the cost of the loan actually helps prevent some very large costs in other areas.
This doesnâ€™t mean that these loans are a good solution if youâ€™re too lazy to go wait out the process of getting a traditional loan. It means that the option to take out a payday alternative loan is always there, with clear terms and a known maximum, to get you through those unexpected events quickly.
Whatâ€™s the value of having your car fixed tomorrow instead of two weeks from now? In terms of the wages youâ€™ll miss without transportation, itâ€™s very high. When you consider that youâ€™d probably lose your job after two weeks of missing work or showing up late from borrowed rides, itâ€™s even higher.
Payday loan alternatives give you a way to solve your sudden financial problems in a way that costs more up front but ultimately leaves you money ahead.
Avoiding The Trap
Payday lenders arenâ€™t content to make a few dollars on your transaction. They want to use other strategies to keep you coming back to them for more loans, more fees, and more interest.
Alternatives take a different approach. Yes, youâ€™ll still pay fees and interest, but the payback process is more direct and less confusing. Youâ€™ll be able to understand what you have to pay and when you have to pay it.
The truth is that the extra fees and interest you pay, even if theyâ€™re less than a payday loan, will still lead you to less debt and less expense. Simply stay on the clear-cut schedule that the lender provides and youâ€™ll be able to pay off the loan exactly the way you expected to.
Sometimes a loan is the better choice even when itâ€™s not the only choice. If youâ€™ve ever opened your electric bill and experienced sticker shock, you know the feeling of immediately realizing you wonâ€™t have enough money to stay current on it.
That doesnâ€™t necessarily mean youâ€™ll end up cut off. But you will pay late fees and may be required to pay a deposit as insurance against future delinquencies. If you could see in advance the potential costs of being even a few days late, youâ€™d quickly realize that a loan to pay the bill in full and on time would be the better financial choice.
Short-term loans of any kind shouldnâ€™t be your way of life, but they should definitely be your parachute. Keep your eyes on your financial goals and work hard to stay on track, but when a curve ball comes your way, be wise about how you handle it. Keep payday loan alternatives in your back pocket, and be prepared to use them as the better choice when financial surprises come along.