There are circumstances that sometimes happen without our knowledge and preparation. We are caught flatfooted and at times when they occur we are in financial distress. When such situation dawn upon us, we are at a loss where to run for help. When friends and relatives are not in a position to provide the relief that we seek, most often we resort to payday loans borrowing. While the help is instantly available, what is equally frustrating is the amount of charges that we are billed to pay for. As we have no other recourse to tie us over, we bit the bullet so to speak. Do you really need a payday loan immediately and can’t wait for a few days to do your homework and find other alternatives? You have to bear in mind that payday loans are extremely costly to use. You can get embroiled in a financial disaster of crisis proportion that you have never imagined of. Just think of paying as high as 870% in APR. Prior to signing up for no credit check payday loans, ask the question do you really need a payday loan immediately? This will give you the right perspective why you need to borrow money from this loan tool. Of course, it is a necessary thing that you should have prepared yourself how to handle it accordingly.
It is very important to always remain calm during emergencies which normally require money to solve them. If you panic, the more chances that you can’t handle the situation properly. You’ll rush your decisions with less thinking or nothing logical at all. In your financial dealings, you’ll not bother about the charges that you’ll have to pay. If you are in a hurry, you will sign any financial assistance whatever comes your way without doing your homework. You’ll accept every term though they run counter to your interest. Perhaps, a payday loan with excessive interest rate provision will not even daunt your instant resolve to get hold of the cash immediately. And before you know it, the interest alone could bury you neck deep in financial troubles when your fail to meet the loan on due dates. This situation will only happen if you allow your action to go before you start thinking. You can be rational enough if you stay calm even during your worst situation in life. A clear mind can provide the best solution and solve the problem triumphantly with less difficulty and damages.
Analyze the Problem
Don’t automatically seek the assistance of moneylenders when you are in need of cash even during emergency situations. Always remember that every loan that you will sign have an interest provision no matter how small it is. Sit down first and analyze the problem at hand. Compute and count the costs. The amount could be manageable which you could possibly sourced somewhere without any expense. You can always avoid resorting to high interest bearing notes if you can properly diagnose the monetary problems that you have. There are several options that you can think of if only you devote quality time to sort out what bothers you. When you give your focus in studying what you have to deal with, there’s always the big possibility of coming up with various alternatives to meet the problem head-on. You will discover many options to choose from. In the process, you’ll learn by heart every solution that comes out of your mind. If you lack the ability to do it by yourself, the best move then is to consult a financial advisor to give you pointers on how to handle your problem properly. Study the situation carefully and evaluate every option that you may think of before taking a definite action.
Choose the Applicable
Monetary problems come in different magnitudes and depend on the kind of circumstances that you are facing. Normally, personal finances are easily dealt with by short term loans like payday loans or cash advances payable from your paycheck. But have you studied its pros and cons and the other options that are available to you. It is the general understanding that payday loans are the highest interest bearing notes when it comes to instant loans. They are the fastest loans that you can source to suit your urgent necessities. But with their excessive interest provision, is the cost commensurate to the solution that they offer? Is payday loan, the right applicable cure to the monetary illness that you are suffering from? Let’s try to answer these questions by analyzing the following options. Here is a list of the other actions that you may choose from that could be applicable to your present situation.
- Seek an expert to advise you-money problems are more complicated when you don’t have the resources to raise the funds. Financial counselors are more adept to these problems and are more in a position to give you professional guidelines to follow and keep your nose above the water so to speak. They can refer you to credit companies that could meet your needs at the least cost to you. It is helpful to seek a second opinion when you are in doubt which way to follow. They can guide until you have found your way out of the problem.
- Get another employer- if you are presently employed, evaluate your other skills and find a second boss. This is a perfect way to raise other funds that you needed badly. What is required here is your focus to get away and ease your financial burdens. If you can’t find another job, you can request to render overtime in your office and earn extra money if that is allowed. This strategy needs a healthy body to take both jobs simultaneously.
- Request a cash advance from your employer or union-some offices allow their workers to apply for cash advances for their emergency needs. The money is interest free and subject to salary deductions. This is the best way to get hold of the fund without any cost paid. Some workers have unions that likewise assist their members through this kind of loan. However, the latter approach bear interest though at minimum amounts.
- Cash overdraft or other form of credit- some banks allow their checking account clients to incur overdrafts and classify them as short term loans. In some instances, the depositor is granted a revolving credit line that is backed up by securities. It is a pre-arrange credit whereby the customer is allowed to draw funds whenever he needs it. The bank then debits the account of the borrowing client.
- Clean loans from peers-this is the most common alternative when somebody is experiencing cash shortage during exigency. He approaches his friends or colleagues to lend him money for the time being. Normally, this type of loan assistance is interest-free and clean. You don’t need collateral in order to borrow money. Your pledge is your character and your promises to pay on a specific timeframe.
- Pawn or sell what you have-pawnshops or other loan associations accept things of value to secure a loan instantly. Search what you have that you can take and acceptable to the pawn shops. There are pawn companies that charge low interest and have longer redemption period. Shop around and transact with the lender that offers favorable interest rates and better terms. If you can’t pawn your items, the other thing that you can do is to sell them. Advertise them through for sale by owner (FSBO) scheme or hold a garage sale in your community.
- Implement a good cash control program-the use of a cash budget is the best way to manage your finances. You’ll always be in the red and continuously suffer cash deficit if you are not using a budget. It would be very difficult to monitor your cash receipts and expenditures if you solely rely on your instincts. Overspending is the most common cause of cash shortages. You can never control your cash outflow if you don’t have a guide that tells you to stop spending. You need a good realistic budget to avoid unnecessary borrowings.
- Renegotiate old credit lines-you could perhaps work out a previous loan with an old creditor with lenient provisions when it comes to interest and security. But before doing this, be sure that you have studied carefully this approach if it’s to your advantage. Old credit accounts could bear lower interest than new credit lines.
Some individuals may find the above not applicable with their situation and they have no options left aside from payday loan accommodations. If that is your case, you can always use any of the alternatives cited above in order to liquidate your payday loan as soon as possible. Do not wait for the 14 day payment period. It would be devastating for you to get victimized by the debt cycle. You should avoid renewing your payday loans by all means. Always ask yourself first this question; do you really need a payday loan immediately?