Apr 07

Alternatives to payday loans

The only alternative should be a fair and responsible lending

The payday loans are not the only option available for people facing a financial emergency. Yes there are several alternatives available that can help you saved your money and avoid the trap of debt associated with such lending.

Alternatives to payday loans start with a savings account, an advance payment of the company where he works, a loan from a traditional financial institution or even credit cards. But before trying any of these options, you can also try to talk to the company where you ask for payment and a repayment plan or at least more time to pay the bill. If that does not work, ask for help from family, friends, church or non-profit organization in your area. If even after all these alternatives still have to take out a loan, consider these guidelines to prevent predatory lending:

A short-term responsible lending should be for him within a period of 90 days or more and the ability to pay it little by little.

The loan guarantee should not be your checking or somewhat unfair as your car.

The loan must have reasonable limits on the number of times you can renew it. (If you need to renew the loan over four times during the year, the reality is that this loan is not helping)

The lender must take into account that you do may or may not pay off the loan during the period specified before giving the loan.

The contract should not have forced arbitration closures. You deserve the opportunity and the right to take your complaint against the lender to a judge in court.

In many cases, the source of financial need has more to do with long-term factors that immediate need. In such a case, it is best to consult a credit counselor and establish a long-term economic plan to take out loan after loan. To find a counselor in your area, contact the National Foundation for Credit Counseling at 1-888-682-9832. To learn how to choose a credit counselor, you can read this article from the Federal Trade Commission.

If a short-term loan is simply the only solution available to you, try starting your search with a traditional financial institution in your area as a credit union or bank. The truth is that all these alternatives will be much better over a payday loan with an interest rate of 400% will leave you awash in more debt.