In today’s economy, it’s nearly impossible to escape a financial emergency. With the average American family carrying more than $15,000 in debt and living paycheck-to-paycheck, how can we afford not to have an “emergency fund or get alternatives to payday loans“?
The answer is that many Americans don’t have one because they are struggling with their everyday expenses. So what do they do when faced with an emergency? They turn to payday loans. These small loans offer quick cash for people who need it but come at extremely high interest rates of up to 300%.
Make Payday loans as last option of emergency not the first
There are many alternatives to taking out a payday loan when you need money fast.
For example, it is better than not having any funds at all and waiting until the next paycheck comes around which could be weeks away!
There’s no shame in using these quick-money options as long as they don’t become your go-to way of paying off debts because there will always come another emergency where this might happen again; remember: Payday loans should be last option to borrow money for emergencies only.
Tips to avoid delayed payday loan
I just read this article on the New York Times about how payday loans are trapping people.
I had no idea these things were so hard to get out of! It’s scary to think that some people might be stuck in a never ending cycle of debt because they can’t afford their payments for all those small loans.
If you’re thinking about getting one, make sure you do your research first and find out what other options you have before taking on more debt than necessary.
Here are the primary steps to follow:
Accumulated debt is a common problem for many people in the finance industry. Whether it’s credit card or student loan, there can be both emotional and financial consequences if they are not handled correctly. This blog post will provide tips to avoid delayed payoff of loans when possible.
- Have an emergency fund set aside before taking out any loans – Pay off high interest rate debts first (credit cards) – Make sure you have enough income coming in to make your monthly payments on time without having to rely on borrowing more money every month.
- Save your credit card values for needed time – Hold your credit card limit, rather than to spend. Because it may help at any critical situation.
I never heard about credit builder loan – What is it? (good or bad)
A credit-builder loan is a type of loan that helps those with poor or no credit history to build their credit score. It is also called a “thin file” mortgage, and the borrower will need to provide additional income documentation.
The borrower pays an interest rate and monthly payments for the duration of the term, and at maturity (typically 2 years), they can take out a larger home loan.
Often times, people may not qualify for traditional loans because they don’t have enough saved up as collateral or because their credit score isn’t high enough; however, if you’re looking to build your credit score then this might be perfect for you!
Advantages of payday loans
Before you take out a payday loan, there are some things to consider.
- What is the interest rate?
- How long will it take for me to pay off this loan?
- Will I be able to make my payments on time every month?
These are all important questions that need answering before you make any decisions about taking out a payday loan.
If all answers are YES, then good to go with payday money holding. In case it’s NO, then avoid to take at the time of signature on final documentation.
Utilize payday loan calculator
If you are in need of a payday loan, it is important to utilize the tools available to make an informed decision. A quick google search will provide links to websites with calculators that can help you determine how much money you will need and for how long.
They offers a calculator that allows potential borrowers to see what rates they would be paying if they take out a $300 loan and then pay it back over 5 months. The calculator also shows what the total payment would amount to as well as other information such as monthly payments and APR (average payment return).