If you’re in a tough financial situation, you may be considering payday loans. There are three thing you need to know about payday loans before you take the plunge. Before you submit your personal information to a payday loan company, you should read these tips to determine if you even need one.
In the United States, each state has differing laws on payday loan requirements, so it’s important to read the payday loan laws as it pertains to the United States. The UK, however, currently does not govern this highly controversial loan process. Either way, read these tips and strategies if you’re in need of emergency cash to pay bills, etc. You never know…it could save you lots of money, heartache, and even show you where you can find an alternate loan with lower APR fees. Although in some cases, a payday loan can fit your situation perfectly. It depends.
Determine where you stand financially
How much money do you have in the bank right now? Is there an emergency stash of cash around that you may have forgotten about? This may sound weird, but it has actually happened to quite a few people. In one case, a mother in desperate need of cash was on the hunt for a loan. With no where to turn, she finally called up her sister to borrow the needed funds. Her sister then proceeded to tell her about the $$8,500 that their parents had given them, stuffed away in a safety deposit box at the local bank, years ago for emergency financial situations. The sister had forgotten all about this of course. Had she went ahead and applied for a payday loan, or other high APR loan, it would have been completely unnecessary. Therefore, ensure that you over turn every rock possible. You never know where there may be forgotten money around.
If you’ve exhausted those available options, here are other avenues you can take:
Borrow from trusted friends and family
If your family and friends find you to be a trustworthy person, you may have a shot at borrowing the funds from one of these sources. Unless you’ve pegged yourself as a person that is deemed unreliable and has shown that you cannot repay a favor, then this could be the best option for you. Often, family or friends are more than willing to help you out…however, if you’ve already burnt that bridge, there’s no reason to try again. Start learning to repay your bills and get debt consolidation help. If you’ve also exhausted this option, continue reading to see if the next option is viable for you.
Sell your valuables to earn cash
Do you have any gold or silver lying around that you don’t use anymore? If so, don’t take it to a pawn shop. In fact, don’t even take it to one of those “We Buy Gold” places either. You’ll likely receive very low offers on your precious jewelry. Instead, take it to respected jewelers in your area who will give you a fair price. To ensure you get the best price possible, take the piece to 3 jewelers in your area and get quotes from each. Take the best offer. Selling valuables goes beyond just jewelry. Perhaps you have a car, car title, boat, or other such valuable. Sell those too if you can.
If you’ve exhausted all three of these options, and theirs no way you can apply for traditional financing because of bad credit loans in the past, then a payday loan could be your best bet in this case. If so, here are tips you need to know in order to secure a decent rates and terms on your cash advance loan.
- Compare payday loan rates from up to 3 lenders
- Ensure the lender has legitimate contact information
- Does the lender sell your data? Don;t give them your personal information
- Do they offer easy repayment terms?
What are some other suggestions you have for finding money in desperate times, with resorting to payday loans as the last resort?