Alternatives To Payday Loans
I handle payday loans everyday, but I really like to raise the awareness of alternatives to payday loans in Canada. It has been proven that spending on regular basis more than you earn is similar with a business man leading his business to bankruptcy. In order to make the best of this situation, many people resort to payday loans, but this can not be seen as a viable solution, since many of the payday loan agencies will lead you into more debt than you were before.
One of the worst disadvantages is that the APR of this sort of loan is somewhere between 400% and rising up to 800%. This being said, maybe you will consider choosing the following alternatives to payday loans.
* First of all consider the factors that have brought you in this situation. Understanding that this comes as a result of the bad management of your finances, you should proceed into preparing a budget with every beginning of the month. This will help you manage your expenditure in accordance with your monthly income. Do not let yourself tempted into buying other than the necessary stuff. Try to get some help from a consumer credit counselor.
* Look around and see if you can get a short-term loan from a credit union or a banking institution. The costs for these sorts of loans are very accessible.
* Try to get a payment in advance from your monthly wages as in this way you can deal with the emergency bills.
* Maybe the option to borrow money from someone who is close to you, such as good friends or family members, is more convenient. You can ask them to lend you money for a short period of time till you can get back on track with your finances. This is a sort of loan with interest free!
* Talk to your bank representative whether it is possible to withdraw money from your checking account to be able to avoid extra charges on the bounced checks. You can be charged a $5 fee, but sometimes there is no charge required.
* If you have decided to shop around for a new credit line, make sure that you check for the APR and other potential charges or fees that these credits come with. You should know that in this way you can stay away from those credits that come with lower costs but higher charges per month.
* Search inside the social groups and communities that have various social programs to financially assist the families with low income. This service can be in the form of "Federal low income home emergency assistance program".
* If you count among the military staff, be active or retired, you can benefit from several loans that are approved for sums beginning with $500 up to $1,000. Their APR ranges from 34% to 40%, which is definitely at least 10 times cheaper than the payday loan.
* Several Consumer finance companies are willing to offer small loans with an APR of 60%, this also being way cheaper than the APR on a payday loan.
As you can see, there are many other options available before going to payday loans. Only if you are left with no other alternatives, then to payday loans as your last resort.