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Alternatives to Payday Loans
You find yourself short of cash, low on food, and your vehicle thirsting for gasoline to carry you to and from work until payday. You’ve seen the ads on TV, heard them on the radio, even read some of the tons of spam e-mail telling you how easy it is find relief from your financial shortfalls. It takes just a few minutes to stop by the cash advance store just down the street, or fax some forms to one of the on-line lenders, so maybe that’s the answer to your problem. You stop by one of the many payday loan stores that have popped up all over the place, give them your Identification, show them a pay stub and proof of your residence. You write them a check for a hundred bucks, and they give you cash. Let’s see - - you wrote a check for a hundred bucks and they hand you around eighty dollars! On payday all you have to do is repay the hundred dollars and take back your check. Just as luck would have it, your car insurance is due this week, so you just write them another check, this time for two hundred dollars, just to be sure you’re covered until next payday. They give you cash again, this time in the neighborhood of a hundred and sixty dollars. Now you find yourself in a rut. You wish there had been another way to get by to begin with, because now it may be hard to stop the cycle you have started. There are alternatives you could and should have tried. FAMILY AND FRIENDS. This may be a good alternative if you can bring yourself to ask. You may have been able to borrow the initial $100.00 and paid it back in a couple of installments, most likely interest free. ADVANCE FROM EMPLOYER. Most employers don’t mind giving you an advance on pay you will receive on your next pay check, and may even take it out in installments. Again, interest free. ADVANCE ON A CREDIT CARD. If you are a credit card holder, you may be eligible for a cash advance. I you pay it back in full by the next payment due, the interest will be far less than on a payday loan. SMALL CONSUMER LOAN. Many small-loan companies will work with you even if you have a few credit problems. If you have good employment longevity and time at your residence, you may be able to secure a small loan. You pay back in installments, the interest (though sometimes quite high) is far less than payday loan fees. In addition, you’ll be building credit. EMERGENCY ASSISTANCE PROGRAMS. There are a myriad of agencies available for assistance in times of need. It may take a huge swallowing of your pride to seek this kind of assistance, but you know it would be much better to bruise your ego than to sink into the quicksand that the cycle of payday loans can, and usually do, become. COUNSELING. Not an immediate resource for assistance, but reputable credit and financial counseling agencies can help you with a plan to manage your credit and finances so that you can avoid future situations that may tempt you to resort to payday loans. Another benefit to seeking advice from these sources is that many of these agencies know how to put you in contact with assistance resources. Find an alternative if you possibly can. Just remember that payday loan companies make a huge percentage of their profits from roll over accounts - people that have to keep getting a new advance each week to pay back the old one and to have a few bucks to make it until the next pay day.
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