Many financial institutions such as the government have criticized the payday loans for its higher interest rates for the borrowers. It throws a concern that this type of loans frequently targets the most vulnerable people who are in worst financial situations.

It is not ideal for people to take payday loans because most of often than not, they become a financial loser and it causes more problems than solving them. This is why people should think of an alternative to meet the financial needs. Other options should not involve high interest rates or rather no interest at all.

Below are a few solutions you can try if you have a tight budget and need more to meet all financial obligations:

Get payroll advance.

You can ask your employer for any cash advance from your bi-monthly payroll. Generally, it does not cost any fees. It is also worth noting that some companies offer low-cost loans to workers in crisis situations. Unlike payday loans, you won’t be charged interest or administration costs when you asked for payroll advance.

Sell your things at pawnshops and online e-commerce sites.

These are one of the best places you can legitimately get money quickly if you have something valuable you would not need for a certain amount of time. The collateral-based loans vary from different places, so the fees vary as well. So, if you have any jewellery or gadget, you may head towards the nearest pawnshop.

In addition, you can also sell your items online. You can use eBay or Craigslist to sell off household items you do not need anymore. Post the photo and provide a description for the item, and the state the price and if there is a shipping fee.

Apply for a freelance work/job

If you still have spare time to work and a skill you can enhance as well, you can get a freelance job. If you’re into writing, maybe you can get a writing job online such as article spinner or trending news writer. If you’re into web design, you can also offer your creative skills to people in exchange for money. Freelance jobs these days are mostly done via online, so you will have more time to do it.

Avail credit union loans

Credit unions are considered as the best alternative to payday loans. Why? One is that the union offer a low interest loan. A lot of unions will definitely offer credit people that have already been refused by banks and other major money lenders. You must know that credit unions have different types and they maintain certain criteria for successful application.

Sometimes, it is necessary to invest money in a credit union in the form of a credit-union savings account. In this way, you can benefit from their short-term loan. Just make sure that you know the criteria for application before applying to avoid any problems.

Borrow from a friend or family member

Friends and family members can be of help when it comes to financial needs. It may be a little tricky to borrow from them because it may end up with a broken relationship but it is better than payday loan companies. Always be serious in paying back them just like being serious with paying bills and bank finance responsibilities.

Get an authorized overdraft.

An authorized overdraft is described as when an individual can borrow through their bank account by allowing them to go into a negative bank balance up to a limit. Of course, it will have a charged interest or daily fee upon using the overdraft.

However, just ensure that you have authorized your overdraft with your bank. Why? An authorized overdraft will cost higher compared to an agreed overdraft with both higher interest rates and extra fees and charges.

Borrow funds from your savings account.

Now, this is the easiest way to get money quickly. You can totally borrow funds from your savings account. Savings account or emergency funds will be your life saving cushion when you have a little financial trouble. If you still don’t have a savings account, start now and you’ll be thankful you did.

Always remember that payday loan companies should be the last option. Just explore other choices and work around it to avoid further financial problems.

About the author:

Candice Larson is a lifestyle and tech savvy who spends time writing for her graduate studies. Currently, she is attending graduate school and works full-time.