Many people get payday cash advances for their urgent cash problems. However, payday cash advances are not the only option for consumers facing cash problems. In fact, there are other alternatives. Many loan lenders have developed lower-cost alternatives for payday cash advances with better repayment terms.
The convenience and speed of the application process for payday cash advances cannot be discarded. Many people still patronize these loans because there are no credit checks performed and you can complete your application online. But the high interest rates and hefty fees are a common disadvantage of these loans. So, if you are facing cash problems but would not like to be bound with a payday cash advance loan, here are some features you may consider in looking for good alternatives to payday cash advances.
The loan should:
· Have at least 90 days repayment term and can be repaid in installments;
· There is no need for a personal check or other forms of collateral (such as a car title);
· Have reasonable limits on renewals
· Full consideration on the borrower’s ability to repay the borrowed money;
· Have no mandatory arbitration clause or renunciation of the right to file disputes with the contract terms
Some of the good alternatives to payday cash advances include the following:
· Payment Plan with Creditors
A good alternative to payday cash advances is to deal directly with your debt. Oftentimes, most creditors will negotiate for partial payments if a payment plan is in place. By having a payment plan with creditors, it will enable you to adjust your bills and pay them off over a longer period of time.
· Cash Advance from Employers
Many employers grant cash advances to their employees. Since this is a true cash advance and not a loan, there is no interest to be paid and is therefore cheaper than a payday cash advance.
· Working with Consumer Credit Counseling Agency
Today, many consumer credit counseling agencies are helping consumers work out a debt repayment plan with their creditors, develop a budget, or offer debt consolidation services. These services are available at little or no cost. To contact a nationally accredited consumer counseling agency, you may call their toll-free number 1-800-388-2227 or visit their website at www.debtadvice.org.
· Credit Union Loans
Applying for loans with credit unions can also be a good alternative to payday cash advances. Most credit unions offer small, short-term loans to their members with loans at 11.75% annual interest, which is 30 times cheaper than a typical payday cash advance. Most credit unions also offer free financial counseling and savings plan to their members to help them get back on track with their finances. Also, they offer very low interest rate loans (with 18% annual interest) and have quick approval for emergency loans. Unlike payday cash advances, loans offered by credit unions give borrowers a chance to repay in longer periods and installment basis. However, you need to have good credit when you apply for these loans.
· Cash Advances on Credit Cards
Credit card cash advances can be good alternatives to payday cash advances that offer about 30% APR. This is cheaper than getting a payday cash advance. However, when not paid on time, this is more expensive than getting payday cash advance because the debts will accumulate and interest rates will accrue until the advance has been fully paid.