3 Alternatives To Payday Loans

If you need extra cash and you know how then there are fortunately a large number of ways you can get it; from taking out loans, to asking for a raise, to finding part time work. Unfortunately though, while there are many different ways to get cash, the vast majority of these will take a bit of time and effort before you see the money in your account. Loans typically take a while to get approved, asking for a raise is tricky and won’t come into effect right away and finding part time work can be tricky (especially in the current economic climate).

If you need to get money quickly then, your options are significantly more limited, but fortunately there are a number of options available to you still. Here we will look at some of the fastest and most guaranteed.

Extending Your Overdraft

An overdraft is a type of loan attached to your bank account that acts as a ‘buffer’ allowing you to go ‘under zero’ as long as you pay the money back. Often the interest charged is very small compared to conventional loans, and if you speak to your bank manager then you may be able to have your overdraft extended that day. You might have to show them your statements to prove that you need the overdraft and that you won’t get into trouble with it, but this shouldn’t be anything too invasive. Statistics show that most people opt for extending their overdraft as their first choice solution.

Home Equity Loan

Your equity is the difference between the value of your property and the value of your mortgage. In other words, this is the profit you’ve earned on your home since you bought it. If you own a home then it’s possible to take out a loan against this amount which will be quicker than many other types of loans as you were already approved for the mortgage. Your home will need to be valued so it is not immediate, but it is quicker than some personal loans. Just make sure you can pay it back or you risk losing your home.

Friends and Family

Asking your friends and family to borrow money is an embarrassing and awkward thing to have to do, but in many cases it is the most sensible option financially and in terms of your security. If you have close friends or family who aren’t struggling with money issues of their own, then they will almost always be more than happy to help you out and would probably rather that than see you get yourself into debt. After all, what would you say to them if the situation was reversed? Obviously, you would want to approach someone who you trust completely. Offering small collateral or paying the money back with interest will make it easier for you to ask for a loan. Moreover, friends and family will charge you very little interest; some may not even charge you any interest at all.

Jonathan Banholzur, the author of this post, is the owner of www.paydayloanstoronto.com and he is quite passionate about his work. He is an expert on personal finance management and provides debt repayment options to his clients. In his spare time, he likes to catch up on the latest technology and sports news.


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