Why Payday Loans May Not Be Your Best Bet for Quick Cash

Here's why payday loans may not be your best option for borrowing small amounts of money fast, along with some other options that may be a better choice for you.

 

You may need quick cash right away for an unexpected emergency or a last-minute special purchase, but you won't get paid at work for a week or two. Or, you may have "too much month left at the end of your money." You may have also seen ads for payday loans promising you quick cash to tide you over until payday, or you may have seen stores offering payday loans. Although payday loans seem like a quick, easy way to get money fast, it's important to know that they may not be your best bet for quick cash.

Payday Loans: Not the Best Option

Here's why payday loans may not be the best option for you, and may even make your financial situation worse:

· Some payday loan lenders aren't regulated for your protection.
· The interest rate on payday loans can be as high as several hundred percent.
· You may be charged outrageously high fees, especially if you are late with a payment.
· After fees and interest, you may owe more on a payday loan than you can afford to pay back.
· You may be pressured into doing something that isn't the best for your situation.

Alternatives to Payday Loans

Depending on your financial situation, these options for quick cash may be a better deal for you:

Personal Loans:

Personal loans are guaranteed by your promise to repay it. Personal loans are also called unsecured loans or unsecured personal loans because you don't need any collateral, like your home or car, to guarantee the loan. Personal loans may be able to help you consolidate your debt or allow you to make a special purchase at lower interest rates than credit cards.

For more information about personal loans, visit our Personal Loans page.

Debt Consolidation Loans:

Debt consolidation may help you save money by lowering your interest rates and the amount you owe every month to free up extra cash. Debt consolidation may also help you organize and streamline your finances with just one payment.

For more information about debt consolidation, visit our Debt Consolidation page.

Home Equity Loans/Home Equity Lines of Credit:

If you have enough equity in your new or current home, you may be able to use a home equity loan or line of credit for extra cash. A home equity loan or line of credit may have a lower interest rate than other ways of borrowing money, plus you may be able to deduct the interest from your taxes.

Visit our Home Equity page to find out more about our home equity loans and lines of credit.

Other Payday Loan Alternatives

There are other alternatives to payday loans for quick cash available. Ask a financial or legal expert to help you find out about these alternatives and which ones are best for your situation. Remember to avoid agreeing to anything that seems too good to be true or too easy to do.

 

Related Articles:
Personal Loan Q&A
All About Personal Loans

 

These are general recommendations not applicable to all financial situations. Every financial situation is unique. Further, the suggestions and recommendations contained within the content provided are not an assurance of any future result. Be sure to discuss your specific financial circumstances with a legal or financial expert before you take action. Contact us for more information.