Fast cash not payday loan
Unfortunately, all of us have to face troubles in life from time to time. They usually happen when you least expect it, and often require urgent unexpected expenses, forcing you to think about where to get needed money right away.
So, what should you do if you are in urgent need of a certain amount of money?
How to get money fast without a loan
Of course, the best source of money in an emergency is the savings that you only spend in very desperate cases. But what if your emergency fund isn’t enough to cover unexpected expenses?
In such a case, it may seem like a convenient solution to apply for a payday loan, especially since there are lenders out there almost everywhere now. Typically, the amount of such a short-term loan does not exceed $1,000, so it can be repaid with your next paycheck. Besides, it is quite easy to obtain, which makes this option of getting money even more attractive.
But it’s not that simple: despite the seeming convenience, such loans can put you in a vicious circle of debt, from which it is quite difficult to get out. The fact is that the interest rates and fees can make a significant hole in your welfare, not comparable to the amount of the payday loan itself.contents ↑
Better Quick Cash Ideas
If you find yourself in a situation where you urgently need money, we suggest using one of the ideas that we have listed below – they will help you avoid problems related to a payday loan.
You can raise the money by selling things you no longer need, but that may be useful to others. Look through your closets, your garage, or your attic, and find old things a new home while getting money for them.
You can use online trading services such as eBay, Facebook Marketplace, Craigslist, and others.
Borrow From Yourself
If you have money in a tax-deferred retirement account, you can take out a loan up to half the amount in the account not exceeding $50,000. The terms are convenient: no credit check, short approval period; interest rates are usually lower than on credit cards; payments are deducted from your paycheck.
However, you should note that this method applies only to those who hold retirement accounts of certain types.
The disadvantage of this method is that since this loan is paid directly out of your paycheck, you will not be able to contribute to your retirement account during the repayment period.
Try Peer-to-Peer Lending
An applicant with a credit score of 640 or more is eligible to qualify for a loan of up to $40,000 through peer-to-peer lending services. This method involves individuals borrowing money from another person, usually through an online platform, which frees you from the need for a bank or credit union. Rates differ depending on the repayment period, credit score, and loan amount, but most often they are 14 percent.
The application procedure uses a “soft” credit score pull that will not harm potential borrowers. It is a quite quick option that allows you to get a loan much faster than through a bank and with less strict requirements.
Use a Low-Interest Credit Card
While this is not the best way for your financial well-being in the future, you can also use a zero percent APR credit card or a low-interest credit card in an emergency, as long as you qualify for it. The negative side is that in this case, you need to pay off your bills in full each month and keep your balances low to maintain a good credit score.
Credit cards usually have relatively high-interest rates, but most of the time they are lower than interest rates on payday loans. Also, some come with a zero interest rate for a few first months. Then the rate increases to anywhere from 12 percent to 30 percent.
Negotiate With Creditors
If you have a good credit history, consider negotiating with your creditors to extend your repayment period instead of taking on additional debt.
Although it’s not a guaranteed way, explaining your situation to your creditors can help you avoid burdening yourself with additional debt and escape additional problems. When dealing with pushy creditors, educate yourself about your rights under the Fair Debt Collection Practices Act.
Reduce Daily Expenses and Earn Extra Money
By cutting everyday spending, you can save some money to pay for expenses in an emergency. For example, start buying cheaper products, cut back on non-essential expenses, etc.
It is also worth considering the option of taking an additional part-time job if you have some free time.
Ask Friends and Family
If you decide to borrow money from friends or relatives, pay back the debt as soon as possible. Otherwise, the money that is not returned on time can destroy a close relationship.
You should ask for small amounts and only rarely, without making it a habit.
Financial difficulties are stressful no matter your income level, but payday loans can make those difficulties many times worse for the years ahead. Fortunately, you now are aware of more smart options for getting money quickly that will be much less damaging to your financial well-being.
By thinking about your options and figuring out which methods are suitable in your case, you can avoid a lot of trouble and restore your financial stability as soon as possible.
Alternative loans can come in various forms, including:
•Online installment loans;
•Hard money loans.
Loans can sometimes be seen as predatory when they are structured in a way that takes advantage of borrowers, particularly those who may be vulnerable or have limited access to traditional financing options. There are several reasons why loans can be considered predatory:
•Hidden fees and charges
•Lack of transparency
•Targeting vulnerable populations
•Aggressive collection practices