Payday loans have been given a fair bit of bad press over recent years, which isn’t entirely surprising considering the number of rogue traders in business.
In truth, to write off every payday lender as a dodgy dealer is wholly unfair and unwarranted – some are light years ahead of others in quality and fairness stakes. However, it’s almost impossible to find a payday lender even today that doesn’t attach astronomical APR figures to any and all sums taken, meaning that should the unexpected happen and repayment faces delays, the consequences could be dire.
Most financial experts advise against payday loans in all their forms, simply because the margin for error is zero and profiteering tends to be rife. Of course, this doesn’t help those in need of a quick cash injection.
What’s the best way to go for immediate, accessible and low-cost cash as an alternative to a payday loan?
Well, perhaps the best option of all is to go with a credit card from a responsible lender instead. Just because you have a credit card doesn’t mean you have to use it, which is why it’s never a bad idea to have at least one spare credit card within your household at any one time. This way, the moment an unexpected expense pops up you have on standby an emergency pool of cash to be used in an instance. And with low interest rates or perhaps 0% if you pay it off within a few weeks, you’re looking at a way, way better approach than a potentially expensive payday loan.
Many of the market’s bigger banks and lenders have (finally) coined onto the fact that when some lenders need money, they need it right now. That’s why there are so many personal loan options being offered that not only take minutes to apply for online, but can be paid out exceptionally quickly. Taking this route gives you the peace of mind that comes with dealing with a major brand, along with guaranteed lower interest rates and more flexible terms.
If you have a bank account that has an option for an interest-free overdraft, it’s a service you should consider taking advantage of. Again, just because you have it doesn’t mean you have to use it – just keep it on standby and dip into it as and when circumstances dictate you must. Many banks offer overdrafts 100% free of charge, while those that attach an APR usually charge extremely low rates.
Last but not least, if you’re considering taking out a payday loan for anything that isn’t a genuine emergency, it might be wise to consider injecting a little patience into the equation. There’s a very big difference between using a payday loan to pay off an important bill and taking out the cash to buy a coat you simply ‘must’ have before they sell out. The vast majority of financial advisers would only ever advise turning to payday loans as a very, VERY last resort – if your own purpose for the cash doesn’t tick this box, you might be better off not bothering.