Pursuing payday loans
has recently raised controversy within the business world, especially when most customers fail to make payments on time. Despite being a simple process, a payday loan can quickly turn into a nightmare and inadvertently affect your credit rating as a defaulter. Rather than place your reputation or that of your business into intense scrutiny, you might want to consider payday loan alternatives as the best means of meeting emergency needs.
Why You Should Consider Payday Loan Alternatives before Securing a Loan
- Borrowing to pay daily essentials
A bridge loan is definitely not the best solution if you intend on paying household bills, mortgage or even other creditors. Rather than languish in debt, it’s in your best interests to contact a debt adviser on the way forward out of the tricky situation. By hiring them, you can prioritize your expenditure and pay all creditors according to a flexible repayment plan. Fortunately, lots of qualified professionals exist in the industry with the sole intention of supervising your debt management. However, desist from enlisting the services of a debt management company that can only fetch exorbitant fees.
- Budgeting money for non-essential spending
Unknown to most customers, bridge loan companies entice clients by advertising their financial packages for the payment of non-essentials such as new clothes, treats or even a night out. Surprising enough, such payments end up costing more than saving and making payments later on. If making scheduled payments isn’t viable, then you could pursue other cheaper alternatives to securing loans.
- Applying for a credit card
Applying for a credit card is widely considered to be a haven for cash-stricken customers, especially when you have a steady paycheck. The credit card will essentially cover temporary financial requirements until you get back on your feet. However, such an alternative is only doable in the absence of niggling problems with your credit cards. Receipt of a credit basically takes a week once the application has been reviewed and given the green light. On the other hand, other companies can ship the card overnight upon the payment of a prescribed fee. However, exercise caution and only consult prominent credit card companies for such a crucial service.
In the face of financial adversity, don’t hesitate to request for a pay advance from your employer. This means you must inform them in advance before payday to expedite the disbursement process. To protect your reputation, desist from requesting for pay advances regularly while pursuing a better alternative to meeting emergency needs.
- Borrowing from relatives and friends
Even though you might shy away from seeking financial assistance from your family, you might want to put your pride aside and settle emergency bills sooner rather than later. Borrowing from relatives or friends goes a long way in protecting you from the risks associated with bridge loans. This entails adhering to the following requirements with the contracting partner:
- putting the agreement in writing
- Preparing a budget and repayment schedule
- Discussing enforcement measures upon default payments or late payments beyond the stipulated time
- Credit union loans
Credit union loans have emerged as one of the best alternatives to payday loans in recent years. Unlike their counterpart, they are known to offer low-interest credit but more importantly, they also cater for customers that have been shunned by banks and other lending institutions. Before disbursement can be considered, clients must adhere to specific criteria enlisted by the creditor as a prerequisite for a successful application.
In most cases, credit unions exist with the sole intention of meeting the financial needs of a diverse target market. It could be individuals living within the same location or working in a specific industry.