Alternatives to PayDay Loans

PayDay loans were once very popular throughout many communities, and they still might be where you’re from. However, they might not be the most practical way to borrow money. If you are in need of extra cash but are unsure of where to turn that is not a PayDay loan, we’ve come up with some solutions for you.

You’re easily able to find that these alternatives to PayDay loans are ideal compared to others that might cost a lot more in the end. Protect yourself, your wallet, and any investments with the right loan.

We’ve gathered the information you need to make an informed decision on which loan, whether it is a PayDay loan or not, is the best suited for you and your financial goals.

What is a PayDay Loan?

A PayDay Loan is a loan that provides quick access to cash in hand when you are waiting for your next paycheck. It is a high interest, low amount, but quick way to get funds. The ability to have cash in hand quickly is what brings many people in to using this loan over the others that could be used.

However, if you want something that is comparable to a PayDay loan, or if you are looking for a way to get out of debt quickly; then consider some of the other options with lower fees and better interest rates overall.

Credit Counseling

Fixing the underlying credit and debt issues is one of the best things you can do to obtain better loans for the future. Stopping the bad cycles is one of the best ways to go about obtaining the credit freedom, but also financial standing you want.

It is important that you look into the company that is offering the credit counseling, as they are all different. You want to work with someone who is going to provide the best services, that is reputable, and more.

Credit counseling is something that can help, but it is not going to give you money, but rather organize your own money to send it to the right places that it needs to be to make more financially sound decisions. Even though it does not give you money, having this service can help you through the rough spot of your financial standing.

Debt Consolidation

Consolidating your debt using a company that can help you do such is a great way to reduce the cycle of making poor financial decisions. The debt settlement professionals can help to negotiate the best rates for the debt that you owe. This is one of the quickest and easiest ways to settle the debts that you have and help you gain more financial freedom.

There are several advantages to consolidating your debt. First, you can often get a better rate that reduces the overall cost of your repayments. Learn more!

Personal Loans

Personal loans can have higher than normal interest rates and are a big tougher to get, especially if you have less than ideal credit. They should come from a reputable company, while also offering the best financial goals and help that you need. You will also be able to get longer pay off terms, so this is a good thing to think about, as you don’t want to pay off a decent amount within a short period of time.

Even if you don’t have perfect credit, we can find the right lender to help you get approved for a personal loan. Pre-apply for a personal loan online here!

Paycheck Advance

In some areas, having a paycheck advanced a few days before you actually get paid is something that can be done. You just have to ask your specific bank or the employer who yu work with. They both have the ability to provide a push ahead of the direct deposit of your paycheck that you get every month.

While, this is not available everywhere or with every employer, but it is worth a try to ask for something like this if you are in need of money sooner, rather than later.

Line of Credit

Obtaining a line of credit is a great way to get more cash to work with. This can come from the bank that you work with. This amount is not going to be too high, but it is something that can provide a decent amount of cash until you get paid again.

This is something that can be tougher to get, as well. This is because it requires a higher credit score and better history. This also means you need to have a steady income to work with. Proof of this will be asked of you.

Frequently Asked Questions About PayDay Loans

Could I still borrow a PayDay loan if one of the other options does not work with me and my situation?

You can still borrow a PayDay loan if you prefer, since this is up to personal choice and what you’d like to get from the loan. It is important to think about the different rates and payment terms before you sign up with them.

Are there other loan options besides the ones listed here?

Yes. There are many different loan options that you can go with, even those that are not listed here. This is why it is important to think about this before you decide to work with one loan over another. They might provide the best outcome.

What if I have bad credit, is a PayDay Loan my only option?

No. You have many options to choose from when you have poor credit. Some of the options that are shown here are options you can use when you do not have great credit to work with. This is something to think about. Look into the options you have based on your credit score and history.

Are personal loans the same as PayDay loans?

No. They are not the same thing, and they provide two different interest rates and fees, as well as a payback schedule that is completely different. While a personal loan does have a quicker pay off amount, it is still much longer than a PayDay loan would be.

It is recommended that you look into both of these options to find out which one might be the best one for you to go with based on the needs you have and your specific background.

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Smarter Loans Staff

The Smarter Loans Staff is made up of writers, researchers, journalists, business leaders and industry experts who carefully research, analyze and produce Canada's highest quality content when it comes to money matters, on behalf of Smarter Loans. While we cannot possibly name every person involved in the process, we collectively credit them as Smarter Loans Writing Staff. Our work has been featured in the Toronto Star, National Post and many other publications. Today, Smarter Loans is recognized in Canada as the go-to destination for financial education, and was named the "GPS of Fintech Lending" by the Toronto Star in 2019.