Deal with a cash gap without a payday loan
Sometimes, you just feel like you’ve run out of options other than a payday loan. You need to pay the rent, and you’ve got a full week and a half until payday. Maybe your car is in the shop, and you need to pay the repair bill to get it out. Unfortunately, you can’t get to work to make the money you need to pay the repair bill, because your car is in the shop. It’s a vicious circle, and you feel like a payday loan is the only way that you’re going to get out of it.
A payday loan will help you deal with your cash gap, but it comes at a price. The interest rate on a payday loan can be 300 percent or more. Fortunately, there are some things you can do when you’re facing a cash gap like this without having to turn to one of these high-interest short-term loans.
Here are some ways to close the cash gap without visiting a payday lender:
– Before you’re late on your bill, talk to your creditor. Whether it’s your rent, your mortgage payment or a utility bill, you may be able to extend or delay your payment. You won’t know if you don’t talk to the creditor. Yes, there are likely to be some fees or extra costs, but it’s not likely that they’ll add up to more than what a payday loan would cost you. Some utility companies, for example, have repayment schedules that will let you pay off a given bill over several months.
– Talk to your employer about a paycheck advance. In some cases, your employer may be willing to give you all or part of your paycheck in advance. Employers that do this will usually have a limit on how much they will do it and how often, so find out what your employer’s policies are.
– Hold off buying something until you have cash. If your car is in the shop, consider taking public transportation until you have the cash. Find out about carpooling with a co-worker, or see if a friend or family member will loan you a vehicle or can give you a ride until you can pay your repair bill.
– Use some of your emergency savings if you have it. Just make sure that you pay it back when it’s all over.
– Consider applying for assistance. The fact is that there are private charities as well as government programs that may be able to help meet some of your needs during a difficult time.