I’ve got a confession to make…
Borrowing money from a payday loan company is quick and easy.
There, I said it. In fact, the whole process is extremely convenient and often completed without you having to speak to (or justify yourself) to anyone. Pretty neat huh?
Well, not always because things can (and DO) go wrong i’m afraid, which is why you need to take a closer look at your options BEFORE borrowing from a payday loan provider.
In this video i’m going to run through the five best alternatives to taking out a payday loan. Each option has been picked because of their speed and convenience, yet lack of cost (interest and fees) when compared to payday loans.
Some of the content may be a little controversial, so I’d really like to hear what you have to say about it by leaving a comment underneath. You can also share this video on Facebook, Twitter and Google+ by using the buttons above.
Transcript of this video: Payday Loan Alternatives
Hiya, my name is Martin Smith, and welcome to the Payday Loans Information Centre.
If you’ve not already done so, I seriously suggest you watch the welcome video on the home page of this website, which, if i may say so, gives a pretty decent overview of how a payday loan works and why you should use them with extreme caution.
Since recording that first video, things have gotten a little crazy at this end and I certainly never expected it to strike a chord with so many people. With that being said, if you have recently emailed in and are still waiting for a reply, please bear with me, I’m just little overwhelmed and frankly intimated by the response it received.
Right then, in this video I’ve decided to run through some of the best alternatives to taking out a payday loan. The video itself will last just over 3 minutes and I guarantee you’ll be surprised by some of the things I’ve got to say.
As I mentioned in video 1, it may seem like taking out a payday loan is your only alternative, but believe me when I say it’s not. In fact, based on my own personal research, there are over 5 proven ways to borrow quickly, and ALL are cheaper than the interest and charges on a payday loan.
Before I dive into the list though, I want to touch briefly on the subject of managing your money, which I deliberately left out of the first video. I’m not gonna start preaching here so please don’t get turned off but I do think it’s important properly sit down and run through all your regular monthly expenses and work out which ones, if any, can be trimmed down or better still removed completely.
I’m a firm believer in living below your means so look at every individual expense and ask yourself honestly if It really IS a necessity.
If you regularly spend more than you earn you need to do this exercise immediately, because borrowing money just to cover your normal monthly expenses is unsustainable in the long run, no matter what I show you in this video.
Ok, now I’ve got that off my chest, I’ll run through what I believe are the 5 best alternatives to taking out a payday loan. I’m not saying that this the definitive list to borrowing money, but my own top 5 ways that closely match the process of obtaining credit via a payday loan, both in terms of speed and convenience, but obviously without the high interest rates and charges.
1. (One). A Credit Union.
Not a term that many people are familiar with and they were a new one on me up until a couple of years ago. The idea behind credit unions is that they’re setup by members of a local community to provide saving and borrowing facilities to people living in that area.
Their loans are extremely competitive and way cheaper than anything you’ll find on the high street. Also, unlike banks, a credit union exists to support the local community, NOT to make massive profits, which is why they’re usually very sympathetic to people with money problems.
To find YOUR local credit union, I suggest doing a quick search on Google, as most towns and cities have them now, but do feel free to browse the directory on this website or give me a shout if you’re having problems.
2. (Two). Your Creditors.
When I say your creditors, I mean the companies you already owe money to, whether thats an existing loan or a monthly contract arrangement, like what you probably have with Sky TV or a mobile phone company.
I know it may sound weird asking them for a loan but that’s not what I’m saying. Instead, I’m suggesting that you contact them and ask for a bit more time to pay your bill.
Most companies will have a credit control system in place and If you explain your situation up front, rather than just defaulting on the payment, they’ll usually offer reasonable repayment terms, aimed at giving you some breathing space to get your finances in order.
Whilst this is not necessarily a loan, it works in exactly the same way since you’ll have more cash in your pocket to cover the costs of the essential monthly expenses, and therefore less of a need to borrow from a payday loan provider.
3. (Three). Friends or Family.
This one is often frowned upon because of the emotions involved, not to mention the fact that it can be embarrassing admitting to those close to you that you’re struggling with money.
I totally get this but as far as I can see, there’s still two major reasons why you SHOULD ask friends or family for help.
First off, it’s unlikely that they’ll charge you interest on the amount you borrow and you certainly won’t be paying any admin fees.
Secondly, because it IS friends or family lending you the money, you’re more like to not only pay them back in full and on time, but also get your finances sorted so you never have to ask them again.
4. (Four). Credit Cards.
Whilst the credit crunch has put pay to most of the cracking deals that were around a few years ago, there’s still some decent credit cards available if you’re prepared to look hard enough.
I’m not talking about store cards or buy now – pay later schemes that encourage you to SPEND money, I’m on about good old fashioned credit cards that can be used for any purpose, and whatever you do buy is available at the lowest interest rates possible, preferably 0%.
If you do go down this route, you might want to take a look at the best buy table on my website, which is updated each week as rates change and new credit cards come onto the Market.
5. (Five). Your Employer
As with friends and family, probably not everyone’s favourite option but again, we need to put our financial heads on and look at the obviously advantages.
In fact, this is the closest thing to a payday loan as you’re gonna get. In America, payday loans are more commonly known as cash advances – which is exactly what you’re getting here from your employer, minus the interest and excessive charges.
I’ve put this one last on the list cause not everyone has a job or the kind of employer that’ll even consider an advance, but it’s still worth a shot if none of the first four options work out for you, and it’s certainly more viable (and quicker) than asking your bank for overdraft, which in today’s market, just ain’t gonna happen.
So there you have it. My top 5 ways to raise finance quickly, rather than applying for a payday loan. No doubt you’ll have more questions and things to consider but at least you now have a bite sized list to work from.
As always, if you need help, feel free to shoot me an email and I’ll do my best to assist. I have recorded other videos and tutorials which aim to answer your most common questions, I also post up a daily news blog so please do check out the rest of site and stay tuned for further updates.
I’m Martin Smith, thanks again for listening and I’ll talk to you soon.