7 Quick Cash Options Other Than Risky Payday Loans

There are many people who are eager to do things that were denied them for more than a decade, now that COVID restrictions have been removed. Tight budgets are not a rare occurrence despite the new stimulus.

Payday loans offer quick cash, without the need for a credit check and no digging through tax returns. It sounds too good to true.

It’s because it is. Forbes reports that 12 million Americans borrow these easy-to-access unsecured personal loans annually. Many are in financial trouble and struggling to pay their bills. Many are not aware that triple-digit interest rates can be dangerous. 

Melissa Rayworth from TakePart wrote, “Unlike other loans,” that payday loans must be repaid full on the borrower’s next payday. This is at an annual interest rate of about 400%. Rayworth also pointed out that 97% people will take out a payday loan again.

Payday loan borrowers can fall into a vicious cycle of debt that can last months to even years. Trent Hamm from The Simple Dollar wrote, “If you take out payday loans, you’ll almost always lose financially.” They almost always create more problems that they solve.

There are other ways to quickly get cash.

Exclusive: Americans’ savings plunge to the lowest point in years

These quick cash options will save you from payday loans

1. You can also get a loan from another lender.

Yes, they do exist. Veridian Credit Union in Iowa offers a PAL, with a maximum loan of $ 1000 and a repayment term up to six months. The interest rate is around 20. It is not the most affordable interest rate but it is much easier to manage than the payday loan’s high interest rates. Veridian is a credit cooperative that only serves certain counties in Iowa, Nebraska and other select groups. If you do not fall within their membership criteria, you can ask your local community bank or credit card union for a comparable product.

For verification: A fourth stimulation check may be on the way

2. Cash advance available on your credit cards

You can also contact your credit card operator to request a modest cash advance. This is a similar but less costly option. While the interest rates may not always be the lowest, you will be borrowing against your own credit limit and are not borrowing from a third party payday provider. If you find the cash advance option too overwhelming, use your credit cards for your post COVID celebrations and stop using them again until your balance has been paid.

Learn more: How to rebound from a month spent big on your credit card

3. You can withdraw from your emergency fund.

If you find the extra interest from using your credit cards too overwhelming, you can always take money from your emergency funds to pay holiday shopping expenses. You are the lender and you have to repay this loan. Financial discipline is key. You may not be able repay what you borrowed if you allow too much time. You might not have enough cash to cover an actual emergency.

4. Ask for an advance from your employer

A cash advance may be available from your employer based on your next paycheck. You won’t be responsible for interest or repayment because it’s money that you’ve earned. Be aware that if you ask for $ 200, your next paycheck will reflect the difference. Also, it is a bad idea to ask for cash advances in a regular fashion. Your employer could be put off if you make frequent financial cuts. Instead, ask for overtime. This can make you more money.

5. You can sell, pledge or auction your unwanted property.

It is a great time to get rid off those unwanted items. It could be anything, including a used phone, furniture, vintage clothes and appliances. You will make a lot of money quickly. Use online platforms like eBay, Amazon Marketplace, Craigslist, and Discover apps like OfferUp, Letgo, and Letgo.

6. You can cut down on your expenses.

COVID’s positive results include many households having reduced their spending. Some people have reduced their budgets out of necessity. Others were able to live on less money because they had changed their lifestyles by working remotely. You should not allow yourself to fall back into pre-pandemic routines when the skies are clear and life returns to seminormal. Reduce your spending on clothes, entertainment, or other disposable income items. The difference will not be enough to pay off a payday loan. Many financial experts suggest that you adjust the tax withheld by your paycheck so that there is more money available immediately.

7. Use an app to save money.

While it’s not a quick source of cash per se, the right application could make sure you aren’t too desperate to get a payday advance the next time an unexpected expense arises. your door. Acorns, the original roundup app, rounds each purchase up to the next dollar and then invests the difference. Chime offers cool auto-save options and allows you to get money out of your paycheck faster. You don’t have to worry about payday loans again if you apply correctly and are disciplined.

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