WHAT IS A PAYDAY LOAN AND WHY IT SHOULD BE THE LAST OPTION
Payday loan companies will try to convince you that taking on a payday loan is your only option. You may think they’re right. After all, you’ve been hit with an unexpected shortfall or a hefty bill. Maybe you can’t pay it and you’re under pressure. What other options do you have? But, what is a payday loan and why should it be avoided?
However, payday loan lenders aren’t the only people you can turn to. If you really are in a fix and you’re in regular employment, then there’s no reason why you can’t try and take out a short term loan instead. But what’s the difference? Is that better for you? Read on to find out more.
Why A Payday Loan Lender Should Be Your Last Option
When it comes to looking for a loan, there’s one thing that stands out as a roadblock for many applicants: credit history. Because of this, it can seem easier to deal with a direct payday loan lender that claims not to care about your credit history. However, it doesn’t necessarily mean that this is a better method. This should be your absolute last option, not your first as it will most likely get you into even more debt. So, what can you do before you take out a loan?
Well, the first action is to see if there is a friend or family member who would be willing to lend you the money. While, like many, you may feel some level of shame in this, it can be a very wise choice. It’s unlikely they’ll charge you any interest after all! However, for many people, that option just isn’t feasible.
After this point, you should consider trying to work something out with the creditor. If you’ve had your car fixed, try and reason with the garage who fixed it. If it’s an energy bill, contact the suppliers directly and try and come to an arrangement. If you are struggling with your mortgage, reputable lenders like Blutin will work with you and not against you.
Sometimes, this may work because the creditors may not want the hassle (and cost) that comes with chasing you up for payment. They would rather get a guarantee from you on when you can pay. These are a few of the things you can pursue before you try and apply to a payday loan lender direct online.
So Who Is The Best Loan Lender?
It’s a tough question and it’s always better not to take out a loan at all. As we’ve stated, your best bet is to try and avoid payday lenders, so other than family and friends, the best lender would probably be the one that offers the best rates. But, if you’re not careful, you could end up with a lender that isn’t very understanding if you fall behind on your payment. So what else can you do to avoid a payday lender?
Well, there are other financing options available. For example, there’s a short term monthly installment loan. Instead of paying back on payday, you pay back over 3, 5 or 6 months – depending on what you choose. This ensures that you’re not paying back the full amount when your wage arrives. With a payday lender, you can end up having to rollover your loan or take on a new one to pay for the shortfall caused by paying off your last loan. Confusing! A short term loan will not see you pay back the full amount right away – allowing you to stretch out the payments and pay it off bit by bit.
Whatever situation you find yourself in, payday lenders should be avoided. There are always other ways to sort out your finances such as making some extra money fast.
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