Alternatives to an Instant Payday Loan


When youve just splurged on a 0 pair of Manolo Blahniks and gone into shock upon getting the credit card bill, those advertisements for a 0 instant payday loan look pretty tempting.

Dont do it. There are alternatives to getting your finances back on track that wont cost you a fortune in interest fees compared to an instant payday loan. Here are a few such options:

Transfer Credit Card Balances

Youve probably got a stack of credit card offers clogging your mailbox each week. Take the time to look them over. You can sometimes find a low introductory interest rate that will apply to any balance you transfer from another credit card.

If your problem is that you already have too many maxed out credit cards, trim those down to one, and close the others. Ask for credit counseling so you can learn ways to better manage your finances. Take a long-term perspective on money instead of jumping for an expensive stopgap measure like an instant payday loan.

Contact Your Creditors

Creditors are interested, of course, in getting paid. They may be more open to negotiating monthly fees and payment schedules than you think. Ask them for more time or to work with you in devising a re-payment plan. Although youll have to pay some extra fees to do this, it is still cheaper in the long run than taking out an instant payday loan.

Debt Consolidation Firms

There are also companies that specialize in debt consolidation. They take the total amount you owe all creditors and negotiate with them on your behalf for lower interest rates and monthly payment amounts. In turn you pay the consolidation company a set amount each month that they disperse to your creditors. A debt consolidation firm can usually get better deals than you can get alone.

Stick to a Budget

A crucial step in getting your debt under control is developing a budget and then sticking to it. There are several excellent books and online guides on how to do a realistic budget.

Part of the budget should include setting aside money each month in a savings account. This doesnt have to be large even a month helps. That way when you run into a financial crunch again youll have your own resources to draw upon instead of the interest-heavy instant payday loan. You will be on top of your finances and youll know exactly how much you can spend and where you need to draw the line.

Do this, and you may never have to consider an instant payday loan again

The hook for the borrower is that time can be lost while waiting for the technology of a fax machine or other implement to click into place.

Consolidation Loans

If they are going to approve you, it can be done within minutes and the money can be deposited into your checking account within twenty-four hours.

Due to the advantages of online processing, you no longer have to send faxes. Others will give you a certain amount on the spot. If you are in the bad habit of spending more than you make and are thinking about going to a payday loan store, stop, and think about what you are about to do. You can get the money as you need cash in hand or in your bank account - both still usually in about an hours time. Usually such lenders charge around 25% of the amount as interest, which is reasonable.