Low-Cost Alternatives to Payday Loans

Low-Cost Alternatives to Payday LoansIf you live in one of the several states and districts within the U.S that prohibit access to payday loans or if you are looking at low-cost ways to increase your spending power, PaydayLoan-Lenders.com can help point you in the right direction!

1)    Approach a local credit union: Community-based organizations called credit unions are popular and cheap ways to borrow extra money, particularly if you have a low-income or are saddled with a poor credit rating. TheCommunityBanker.com is a site that has a state-by-state directory of all the credit unions currently in operation within all 50 states and the District of Columbia. The site is updated frequently and provides full contact details for all of the organizations, including for those that offer internet-based lending. You can check the credentials of any credit union via the independent federal agency, the National Credit Union Administration.

 

2)    Use a Low-Cost Credit Card: For short-term borrowing in an emergency sticky situation, a well-researched and competitively rated credit card can offer a good solution. NerdWallet.com is a site that can help you compare low-cost credit cards and find an attractive interest rate with low APR and costs.

 

3)    Negotiate with your creditors: In the instances when your need to borrow money is to meet pre-existing payment obligations, it is always a good idea to speak with your creditors to see if there is any leeway for an extension to pay. Do this as quickly as possible in order to increase the chances of getting more time to pay. Of course, try to negotiate any fees that might apply for late payment such as a late charge or higher rate of interest.

 

4)    Investigate the possibility of an overdraft in your checking account: Your bank might be willing to extend to your checking account a temporary overdraft. This is a pre-agreed “buffer zone” of going overdrawn that can help when you need a little extra to get you through the month. There will be a cost involved in this, so find out the terms that may apply to you. Also look at something called “bounce protection” to minimize any extra fees if you reach your limit so you can’t exceed it and be charged extra. This is a good tactic to help protect you from further credit arrears.

 

5)    Research all of the extra protections and possibilities for military personnel: If you are in the military, there are additional protections in place for you that make payday loans often unobtainable due to a capping of interest at 36% in 2007. Instead, military consumers can find out what other borrowing options are available to them by contacting the Department of Defense, toll-free 24 hours a day, 7 days a week, at 1-800-342-9647, or at www.militaryonesource.com. Service members may be able to obtain financial assistance from military aid societies, such as the Army Emergency Relief, Navy and Marine Corps Relief Society, Air Force Aid Society, or Coast Guard Mutual Assistance.

 

6)    Ask Friends and Family or your Employer: Also consider approaching friends or family for a short term loan. It might also be possible to explain your predicament to your employer and receive an advance on your salary.

If you have any quastions or need additional information contact us at PaydayLoan-Lenders.com.

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