Are there any alternatives to payday loans? When you need to borrow money, it’s easy to get pulled in by the shiny logos and bright graphics of these payday loan companies. They are easy to set up but whilst the money might help you out in the short term, the long term negatives of a payday loan need to be considered. They can spiral you into debt which is hard to pull yourself out from. Mrs Pinch looks at some alternatives to payday loans.
If you’re struggling to keep on top of paying your bills and rent, one of the first things you should consider is speaking to a debt adviser. They will help prioritise your debts, talk to the people you owe money to and figure out a payment plan to get you back on the right track. There are plenty of organisations to turn to who will offer free, confidential advice and help. You do not need to pay for help.
There is also help out there from your local welfare assistance scheme. The vary from town to town and county to county but generally provide help with the likes of food, heating and clothing. You might be able to get vouchers, foodbank parcels, furniture, white goods and possibly pre-payment cards. This would then help you to use the money you do have to clears your debts.
Is it possible to get an advance on your wages? It might not be but if you don’t ask you’ll never know. Be honest with your employer, tell them what it’s for. If you’re honest, they’ll be more likely to want to help. If you are job-seeking and in receipt of benefits you might be able to get a short term advance. You’ll need to speak to your Jobcentre Plus adviser and this will have to be paid back out of your benefits.
turn to loved ones
Can friends or family help? Borrowing emergency cash from your loved ones certainly helps to avoid risks associated with payday lenders. It’s so easy to not see the loan as a real loan though, which can then lead to friction and family ties being tested. Put the agreement into writing, work out a repayment plan and talk about what happens if a payment is late, missed, or the money isn’t paid back at all. Friends and family will want to help but not at the detriment of their own financial stability.
If you are able to get a credit card, find one with 0% interest for a couple of years. This will help you be able to pay off what you owe right now by using the card, then give yourself time to pay off the credit card bill. The fact it is 0% means you’ll only pay off what you borrow. If you pay it off within the time period it is 0%. Ensure you do before that runs out and it defaults to the higher % which will then start mounting up debt again.
you are not alone
There are plenty of alternatives to payday loans for you to consider. Some payday loan companies use the idea of the idealistic as a way to pull you in. You do not need these things. If you cannot afford to pay for them by yourself, there are more important things to consider. Putting food on the table and heating your home is of far more importance. Ignore these advertising ideas that you need this, that and the other. What you actually need in your life is financial stability and a payday loan is not the answer. You are not alone, there is help you can access.