Payday loans - What else is there?

There are some alternate choices to payday loans or quick cash loans that you may wish to think about when shopping for an occasional source of cash. While payday loans are convenient and easy to get, they are rather costly when compared to other types of loans.

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The price for a cash advance is dear, with interest that can be as high as 1000% a year, but it is a simple way to obtain money in a pinch. The stores that sell these pricey financial products are seemingly on every corner and they make it very easy to borrow sums of money ranging from one hundred dollars to five hundred dollars in a pinch. The payday loan business is successful right now, as more and more people struggle to make ends meet.

Payday loans or quick cash loans can be pretty tough to pay back and the reports of people who are juggling as many as fifteen such loans at once are rampant. What if a borrower needs a speedy source of funds but does not want to take on the high costs tied to cash advance loan products?
 

There may be some other choices available, and we will describe them below:

• Credit Union Loans - A lot of smaller credit unions are advertising short term loans that can compete with quick cash products.;; Credit unions tend to provide much more affordable rates than cash advance lenders; often no more than 20% a year. Some may encourage you to seek financial counseling if you make repeated use of these short term products.;; More and more credit unions are starting to promote small loans, so talk to your local branch, as they may have an answer for you.
• Employers - Some companies will offer occasional advances to employees. Paycheck advances would constitute an interest-free loan, should your boss be willing to assist you. You likely can't make a practice of borrowing against a future paycheck, but your employer might be willing to help you out once.
• Credit card advances - Even if your credit is bad, you can probably qualify for some type of bank card, as there are many banks that specialize in advertising charge cards to individuals with less-than-ideal financial histories. It's worth the time and effort to seek them out. The interest rates are more expensive for cash advances than for regular charges; they typically run about 30% annually. Credit card advances are easy to obtain; if you get a personal identification number, or PIN, you can acquire the cash from any nearby ATM. A lot of charge cards will permit cash advances.
• Relatives and friends - Be careful when borrowing from friends or relatives; you don't want to ruin your relationship with them. Should you borrow money from friends or family, make sure that you pay it back or you may find yourself spending your time alone. You may find that relatives can find a couple of hundred dollars to help you out in a pinch.

While the availability of these choices will vary from consumer to consumer, all of them will be less expensive alternatives than the 400% funds that you will find at your neighborhood quick cash shop. These are just a few choices available to people who have a short term need for some quick cash.