15 Alternatives To Payday Loans
Payday loans can be the perfect solution to a temporary financial blip. Perhaps you miscalculated the month's budget, have an unforeseen bill that needs paying, or you need to get the car fixed. If the debt can be settled at the time of your next pay check, then a payday loan is definitely worth considering.
However that doesn't mean there aren't other options - especially if you don't meet the requirements, don't believe you'll be able to make the repayment, need more than a payday loan offers, or want extra money for the long haul.
Below are 15 alternatives to payday loans that can help you raise some quick cash or earn extra money on a regular basis:
1. Use A Credit Card
If you have a credit card that isn't maxed out then it can be just as effective as a payday loan for paying bills or making purchases. As long as you pay off the balance in full by the stated date you will not incur any interest.
If you need physical cash, credit cards also offer cash advances, however they do come with an interest charge so be sure to weigh this against the charges for a payday loan before making your decision.
2. Get An Overdraft
As long as you don't have a terrible credit history most banks now offer what is called an overdraft on their checking accounts. This means you are allowed to go overdrawn by a certain amount of money and the bank will cover any outgoings up until that limit. Like a loan or credit card you will need to repay this and could incur interest depending on the terms.
3. Personal Loans
If you need to borrow money for a longer period of time or at amounts larger than a payday loan, then a personal loan from the bank might be a better option. A typical personal loan will include a fixed rate of interest and an equal amount of monthly repayment instalments. You will however have to have good credit to qualify.
4. Borrow From Retirement Fund
If you have an IRA or 401(k) for your retirement it may possible to temporarily borrow from this savings pot interest free, so long as you repay the money on the specified date. Failing to do so may result in having to pay income tax and other fees.
5. Borrow From Life Insurance
Similarly you may be able to borrow from your Life Insurance policy, which will give you then rest of your life to make repayments, and even if you don't pay it all off you it will only be deducted from the remainder of the policy.
MONEY RAISING ALTERNATIVES:
6. Errands and Odd Jobs
Do your friends and family have any errands or odd jobs that need completing? Offer to do them in exchange for a small payment. This could be anything from clearing a garden, to painting and decorating, to babysitting.
7. Sell Old Unwanted Items
While the era of the garage sale may be behind us there are more opportunities to sell your old stuff than ever before. As long as the items are in good condition and still in demand you can easily raise money through auction websites like eBay or classified services like Craigslist.
Another popular avenue for selling your stuff right now is Facebook. Search you local town or city and you're sure to find a "Buy Sell" page. Simply join the page, post your item details with some images, and locals will contact you and arrange to come and pick it up for cash.
8. Ask For More Hours
Working is obviously one of the key ways to make money but if you need a little extra, why not offer to put in some more hours? Depending on your job you can ask around and cover other people's shifts or your employer may allow you to work overtime as a policy. As long as you don't need cash for an immediate emergency, doing some extra work is a great way to bump up the savings.
9. Get A Second Job
If you find yourself with free time in the evening or at weekends why not consider getting a second job in the service industry or a side job that relates to one of your hobbies? Handyman, dog walking, cake decorating, the list of possibilities is endless. You can also turn to the internet to make extra cash if you have skills in web design, programming and other computer based disciplines.
10. Ask For An Advance
Payday loans grew out of the concept of wage advances, so before considering a loan why not ask you employer for an advance on your wages? This simply means you get a portion of next month's pay check early. Some employers even offer their own form of loan which is paid back by taking a portion of your wages each month.
11. Are You Withholding For Tax?
It is not uncommon for employees to find themselves paying too much tax, only to get a refund at the end of the financial year. Instead of waiting for that lump sum double check with your employer that you're paying the right amount or aren't deliberately having extra money put aside as a "tax withholding". That refund is nice when it comes, but if you need money now it's not very helpful. Learn more about tax withholding here - https://www.irs.gov/individuals/employees/tax-withholding
12. Start a Budget
If you don't already do a monthly budget then now's the time to start. It doesn't have to be complex, simply list all of the money you have coming in and all of the expenses going out, and then look to see where you could be overspending and costs can be cut. Do you really need that expensive brand of hair shampoo every week? Do you really want all of those TV channels when you could get a cheaper Netflix subscription? Why waste money at lunch time when you could make your own lunch and bring it to work for much cheaper?
13. Ask For Help from Friends and Family
Most people are too prideful to ask for financial help from friends or family, but if somebody who cares about you realizes you're struggling they will be more than willing to help. Just be sure to treat the situation like any other loan contract, because money is not worth losing loved ones over. Even if they can't lend you money themselves, they might have some invaluable advice.
14. Make Money Online
The internet has opened up all sorts of money making opportunities for those that have the necessary skills. From running a blog or website that makes money through advertisements, to selling products on eBay, to offering your services as a freelancer - there are an endless list of things you can do to make extra cash. This isn't easy however and there are many "get rich quick" scams that could sucker you in by offering the "secrets" to make money online in exchange for payment for the information. Take note, 99% of money making methods can be found for free by googling!
15. Become A Youtube Star
Ok so maybe becoming a star isn't so easy, but if you have opinions on the world, have a hobby like video gaming, or can offer tutorials and advice to people, making Youtube videos can earn you some extra cash if you sign up to allow adverts to appear on the videos. This should really begin as a hobby and once you build a following you can then reap the financial benefits.
Find more great ideas here - http://www.investopedia.com/articles/personal-finance/120115/best-alternatives-payday-loans.asp