3 Alternatives to Payday Loans to Pay Off Debt

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Are you stuck in a financial pickle? Considering taking out a payday loan? Think again.

According to financial experts, that’s one of the worst money moves you can make. Payday loans can have interest rates of a whopping 400% or even more.

Luckily, there are some alternatives to payday loans that are much more reasonable. Today, we’re looking at three of the best.

Negotiate with Your Creditors

A lot of people think of their creditors as scary, even evil beings. While debt collectors certainly aren’t going to win any Miss Congeniality awards, that’s because you’re already behind on your payments. Calling your creditors is likely to be a fairly pleasant experience.

Call them and ask them if you can work out a payment plan, or even make a one-time fee-free late payment. Particularly if you have been a loyal or longtime customer with a track record of paying on time, they may very well say yes. And after all, the worst they can say is no.

In the event that they do turn you down, get creative. Maybe you can borrow from Peter to pay Paul. Do this by making an agreement with a flexible creditor to make a mandatory payment elsewhere.

Payday Alternative Loans from Credit Unions

As the name suggests, these loans are offered for the exact purpose of helping out consumers who might otherwise be tempted to take out a high-interest payday loan. They are offered by credit unions, which might be a good idea for people with financial struggles anyway.

The fees for processing payday alternative loans are capped, by law, at just $20. You can borrow between $200 and $1,000, and you will have six months to repay the loan. Best of all, you can take out several of these loans in a six-month period.

This type of agreement could help you do a little casual debt consolidation, too; get more information about that approach here.

Earn Some Fast Cash That Doesn’t Have to Be Paid Back

If you resisted the decluttering and minimizing trend that peaked a couple of years ago, it might be worthwhile to go treasure hunting in your attic, spare room, or storage unit.

Even if you know there’s no priceless sculpture or Patek Phillipe pocket watch in your possession; you might still have valuable stuff.

Designer clothes, shoes, and handbags could be consigned. Maybe you’ve got a KitchenAid mixer or fancy espresso maker you never use that could fetch a pretty penny on Facebook Marketplace. Jewelry, electronics, and tools are also usually lucrative things to sell.

Consider selling your services, as well. Can you clean, babysit, proofread, fix household items, cook or bake expertly, or sew? Maybe there is someone among your friends and followers who would happily pay for those services.

There Are Plenty of Alternatives to Payday Loans

Having too much month left at the end of your money is never a good feeling. But it’s not the end of the world, either! With alternatives to payday loans like these, you can actually pay what you owe without owing someone else even more.

Did you learn from this article? If so, share it on social so others can benefit, too!