Thanks to the innovative technology from PressPay it is possible.
What is a payday loan alternative?
A payday loan is a type of short-term loan to help you cover immediate cash need before your next payday. They come in small amounts, high-cost and high fees – even triple-digit percentage rates (APR). Payments are usually due in two weeks or closer to your next Payday.
However, a payday loan alternative doesn’t have to be another loan.
There are many other ways to get money fast. Popular payday loan alternatives include:
- Negotiate a payment plan
- Get an advance on your paycheck.
- Consider a bad credit loan.
- Credit union alternative loan
- Apps that let you borrow money instantly.
They can save you a small fortune compared to a payday loan. Avoid payday loans so that your finances can be better off for weeks, months, and years to come.
What are some alternatives to payday loans?
1. Negotiate a payment plan
Maybe you are tempted to take out a payday loan because you have a big expense to pay, such as utility bills, rent, or medical care.
But how about working something with your creditor? Your creditor could be willing to work out a plan that is at a far much lower cost than taking out a payday loan.
A payment plan generally works out if you get paid on time, but you just hit a spot of bad luck.
It might be uncomfortable asking your doctor or landlord if you can pay in instalments. But asking for it is far better for your finances than taking a payday loan at an extremely high-interest rate – to pay your bills.
2. Get an advance on your paycheck.
A salary advance is a loan you take against your next paycheck.
Many employers do not let their employees take salary advances. It can be a hassle for their payroll. But while not all employers offer direct advances to their employees, some offer the advance under limited circumstances.
An advance on your paycheck is essentially getting paid in advance for future work, meaning you get an interest free loan from your employer.
While such loans are more affordable, they are not always the best option. Plus, you want to keep personal financial challenges private from your employer.
However, if you have a good relationship with your employer, this could be a viable option, better than a payday loan.
3. Apply for a bad credit personal loan
If you are strapped for cash and need it fast, then a bad credit personal loan can be a better option than a payday loan. However, look at the terms and ensure the bad credit personal loan is not a payday loan.
We know you must repay a payday loan on your next Payday, but personal loans/instalment loans allow for a longer and manageable repayment period.
4. Get an alternative loan from a credit union.
Credit unions sometimes offer payday alternative loan programs (PALs). Their specific objective is to save you from taking out payday loans.
They are small loans, usually between $200 – $1000. The cost of borrowing money from a credit union is lower than a standard loan.
Such loans intend to help you rather than trapping you into a debt cycle you can’t afford to pay back.
But to qualify, you have to become a credit union member if you aren’t a member already.
5. Apps that help you access your salary in advance
PressPay is one of these apps – for a low fixed fee, PressPay will transfer you a percentage of your next paycheck immediately so that you can get things like bills paid now. It does require that you have a stable paycheck coming in however.
Having an emergency fund can be helpful when you encounter a small hiccup in your plans, causing a big financial headache.
These days, surviving between paychecks can seem like a big obstacle, but payday loans are not the best alternative. If you absolutely must get the money to pay bills, consider something like PressPay.