Any other alternatives to payday loan?

[ryan123]

Hi,

We all know that payday loans are not healthy loans, so what are alternatives to it?

We know people who take payday loan are basically under urgent financial need and are with poor credit standings. SO what are the alternatives to payday loan?

Thanks,
Ryan

[Ima saver]

I would do anything rather than get a payday loan. Sell my blood, sell everything I own. Those things are bad news.

[scfr]

I'm with Ima. I would rather stand on a street corner begging for money than take out a payday loan. Anything that is legal is a better alternative than a payday loan: Sell my possessions, take an extra job, try to borrow from a family member, look for help from a charitable organization, etc.

[Hedy]

Credit card check.

[PrincessPerky]

pay late fees...

Sell lots of stuff, any stuff, all stuff

eat less, me not kids.

Ask for help.....church state, friends, family...

[disneysteve]

The best alternative is prevention. Stop living beyond your means. Don't spend money you don't have. If it means living on rice and beans for a month, build up a small savings to carry you over.

[mom-from-missouri]

Disneysteve is right. Most people I know who have used payday loans aren't the brightest bulb in the pack when it comes to finances. I see them eat out for lunch everyday spending $7-$10 daily, then complain they have no money. I worked with a gal who made more than I did by $3 an hour (she was making around $26 per hour), divorced, had 1 kid and got $1200 a month child support. She never had money, and did the payday loan thing every week. Yet, she traveled by plane every time she had 3 or more days off in a row to visit family, or meet some guy she met on the internet, got a new car every year, all the latest clothes, must have had 200 pairs of shoes, hair and nails done one or two times a week....
All the time creditors where calling her at work, and one day a payday loan guy showed up looking for her. They took her car from the parking lot (title loan). She did the bankruptcy thing, and once again, is in debt. She still doesn't get it.

[poundwise]

If you are a man, an alternative to payday loans is to give a stranger $100 to knee you in the groin.

Seriously, the effect is similar. Payday loans are foolish, hurtful, and harmful.

Sell things. If you need the money quickly there is a reason; it rarely 'just so happens' so take a good look at your life and work on getting your life straight. Still, if you need it now, take something of value to a pawn shop and sell it. You'll lose the something but you can always buy another something later.

Often, what is needed is work. No job? Get one. Got one? Get another. Got two, still don't have money? Cut lifestyle. Sell something(s).

I can't think of a circumstance that is made better for more than one day's time by a payday loan.

[The Budget Man]

People don't choose payday loans as a first choice. People use payday loans because they are short of money. (Many people use their Credit Cards as a type of payday loan. The problem is that the balance owing can easily grow.)

The good news is that if you get a budget that works for your situation you'll be able to avoid payday loans in the future. Once you have a budget there may be a benefit in reorganising your loans (consolidating at a lower interest rate).

[Ima saver]

I agree with scfr, I would rather beg on the streets. Hey, I grew up poor ( my father died when I was 9), and we just did without. We ate a lot of cheap tv dinners. (33 cents)

[disneysteve]

Many people use their Credit Cards as a type of payday loan.

Just to be clear, though, credit card interest rates average around 18% or so, maybe as high as 25 or 30% if you have really lousy credit, but Payday loans have triple digit interest rates, sometimes as high as 200 or 300%. So a lousy credit card beats a "good" payday loan any time.

[jamai]

an overdraft on your current account is a good alternative, interest rates are fairly low.

[EverydayFinance]

Aside from avoiding emergency borrowing to begin with, the next best thing for borrowers in my mind is Prosper.com. Due to peer-to-peer lending and free market forces, incredible rates are achieved for borrowers as opposed to racking up 20-30% credit card rates or even higher for these lenders. I would avoid pay-days at all costs! Check out prosper through various forums,etc. If you want to visit everydayfinance, there's a $25 referral bonus for new lender signups now as well. As a lender I'm at a 14% avg loan rate with over 40 loans and no defaults. Great investment so far.

Good luck!
Dan

[click4credit]

Pay day loans are definately bad news. Obviously you should plan so you never need one but emergencies do arise time from time. One option is to create some backup options, for example having access to a revolving line of credit may allow you to borrow up to an agreed amount anytime you like. Also, if you agree an overdraft arrangement with your bank you may incur lower fees than going overdrawn unexpectedly. These options are likely to incur lest cost than a shady pay day loan with crazy interest rates.

[DebbieL]

I keep a fairly low interest unsecured (I don't own a house) line of credit open for rare use. It has a $5000 limit. I haven't used it in years. I imagine if I had to, I would turn to that as opposed to a payday loan (which I have never and will never use).