5. What are the alternatives to cash loans?
You need to consider the following alternatives before you apply for a payday loan:
- If you are finding it hard to pay your bills, contact your creditors as soon as possible to see if they are willing to give you more time.
- Consider other sources of funds, like your family members and friends
- Consider selling or pawning some of your assets to raise money
- Find out if you can get a loan with a lower interest rate from your credit union or bank
- Shop around for loans with competitive interest rates. Compare the APRs and other charges before you decide
- Contact your bank and find out if you have or can get overdraft protection on your checking account.
- Create a realistic monthly budget that includes your daily and monthly expenses. Avoid unnecessary purchases.
Get in touch with your local consumer credit counseling service to get help in making a budget or to negotiate a debt repayment plan with your creditors.