Every person in this world works hard so that they can earn money for their family. However, it is a reality as well that there are instances that the money earned is not enough especially when there are emergencies that need to be paid off right away. With the immediate need of money, a lot of people would resort to having a payday loan.
A payday loan is a type of loan where you can get the money in a few days, but you need to repay it within the next thirty days. This is ide al for people who need the money right away and cannot wait for a longer time to get the money. However, payday loans have disadvantages, and one of them is the high-interest rate and this interest rate doubles especially if you cannot pay on time. So, ins tead of having a payday loan, you can always go for the alternative. Here are the alternatives to a payday loan.
First, you can try borrowing from a close friend or a family. These people know you very well, and you also know these people well, and t his means that borrowing money is bounded by the trust that has been established. If you borrow from a friend or a family member, you do not have to worry very much about paying the loan right away. Moreover, there are so many family and close friends who do not let you pay any interest.
Second, you can have a credit card instead. A credit card’s advantage is holding off the big payment right away and instead divides the amount into several months with lesser interest. However, with regards to credit cards, you should know that you have to pay your due every month or else the amount will become bigger. Moreover, credit cards have rewards as well just like miles points, and then you can travel for free in no time.
Lastly, you can always have a per sonal loan. The difference between a payday loan and a personal loan is the interest rate and the amount of time to be paid. Personal loans have to be paid longer just like a year or over that. So, if you do not have the money right away, you can still ext end your money because you have to pay in a staggard manner.
It is just good to know that paying a loan with another loan does not help at all. So, do not have two loans at the same time or else you will have a hard time getting out of a debt.
In summar y, a payday loan is not always the solution to being moneyless. There are other alternatives that you can have just like borrowing money from your family or friends, having a credit card or even a personal loan. But the best way is actually by saving mone y so that in times like you do not have money, you always have an emergency fund that you can run into.