Did you know that an average payday loan customer repays 50%-100% of principal (if not more) as interest on his payday loan? At this rate payday loans are not exactly the short term measures to fix temporary financial glitches they are claimed to be. Let us explore some alternatives which you may use to avoid taking a payday loan.
Loans from friends
You have probably already explored this option, but just in case you haven't, it might be more worthy to get a loan at no or negligible interest.
Peer to peer lending communities
One such community available online is zopa.com which can make loans available to you if your credit history is decent. There are a few credit union as well which enable people to take loans from each other.
Working overtime
This is something you may not have considered, but believe us, working some extra hours is far more useful than all the stress a payday loan may get you into.
Sell stuff you no longer need
There is nothing like cashing in on something you no longer need and that too at a time when you are really in need of some cash. We are sure that most of payday loan consumers have stuffs which they can sell online to earn as much money as they will need from a loan. Ebay.com or Craiglist.com can be used to sell household stuff.
Pawn shops
Well, this is certainly not the best way, but probably better than payday loans. Interest rates are high, but less that payday loans. We are very soon coming up with a similar list of pawn shop lenders in UK.
Adjust your tax withholdings
Hey, you probably forgot this, but a small sum of your salary is each month deducted to compensate for your annual tax returns. You may adjust your withholding for just one month when you need money really urgently.
Do a side job
Find a temporary side job to help you with your current cash need.
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