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It wasn’t necessarily a decision that was made willingly, but it was one that was forced upon you by the circumstances of your life. The cycle typically follows this pattern: unexpected financial emergencies, payday loans’ fast cash, a brief reprieve provided by the short repayment period, and the opportunity of renewal. Consider a situation in which the return deadline is missed and you find yourself in a deep financial holw as a result of the loans’ exorbitant interest rates. If this is your case, there are options you can consider.

1. Get a Loan from Friends or Relatives

Loans from intimate acquaintances like relatives and family give the most flexibility, despite the potential drawbacks of lowering dignity and perhaps damaging your connection with them. The agreement you both approve will determine the terms of any collateral requirements, interest rates, cash availability speed, return timeframe, etc. Therefore, instead of choosing a predatory loan the next time you find yourself in a bind financially, look for a willing lender among your close friends and family.

2. Personal Loans

Numerous advantages come with personal loans, including the provision of funds for managing daily demands like paying bills and buying groceries. Personal loans are more likely to be approved for those with good credit and reliable income sources, while bad credit scores are not regarded seriously. Poor credit options are also available with personal loans. The lender sets the origination costs for these loans, which have modest interest rates. Such loans are also “kinder” because no collateral is needed before they may be granted. Finding a personal loan is also pretty easy because so many banks, credit organizations, online lenders, etc. all provide personal loan services.

3. Credit Unions

Most are already familiar with credit unions. You may even be a member of one. As a result, you are already aware that getting a credit union loan requires the same steps as getting a loan from a bank, such as being a member of the credit union itself. Before wishing to obtain loans from these institutions, you must be a member of one of them. Credit unions, in contrast to typical banks, are not solely focused on making a profit; rather, they exist to serve the needs of its members. As a result, they charge exceptionally low interest rates on their loans. Additionally, they offer simple conditions for potential lenders.

4. Conclusive Thoughts

You should be aware that not all loans provide relief like the cactus if you ever find yourself in the arid wasteland of financial troubles. You shouldn’t have an urgent need to get a payday loan. If necessary, put money aside, reduce your luxury spending, and develop spending habits that prevent debt. If you manage to avoid getting a payday loan, you save yourself from a possible incoming catastrophe.

Joyce Marter

Joyce Marter is a licensed psychotherapist with 25 years of experience and entrepreneur who founded and successfully sold Urban Balance, a national outpatient mental health company in the U.S. Marter is an adjunct professor at Northwestern University, international speaker, blogger for Psychology Today and mental health thought-leader specializing in the psychology of money.

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