Payday installment loans are the best source for quick cash in times of emergency needs. However, many times consumers become dependent on these loans. They find themselves turning to these loans too often making it impossible to get out of the cycle of debt.
Alarmed with this scenario, the Federal Trade Commission has recommended tips and alternative sources of quick cash aside from using payday installment loans. But whenever it is impossible to find other alternatives, the commission suggests using payday installment loans wisely. Here are some of the tips they have suggested:
1. Shop around for cheap payday installment loans. It is important to compare the cost of each lenders offers. Remember to look for payday installment loans with the lowest annual percentage rate (APR) and compare the fees charged by each lender.
2. Keep in mind to borrow the lowest amount possible. The amount to be borrowed must meet only your emergency needs so can afford to pay back the loan with your next paycheck.
3. If possible, ask for a cash advance from your employer. This is more affordable because there are no extra fees to be paid.
You may also look for other alternative sources of quick cash. Here are some of the avenues you might consider:
1. Ask your bank or credit union if you can qualify for their small, short-term loans. They usually have cheaper rates than a payday installment loan. You may also try a cash advance from your credit card. However, they are more costly than getting a short-term payday installment loan.
2. If you have a problem paying your bills on time, you may contact your creditors and ask for extensions. Most of these creditors are willing to give an extension on payments. But be sure to ask if they charge fees for these extensions or have higher interest rates compared to other payday installment loans.
3. You may ask a consumer credit counseling service to help you develop a debt repayment plan and a budget. Most of these non-profit groups will help you for very little money or at no cost. Some credit unions and employers offer these services.
4. Create a budget. Make a list of all your expenses in a week. With this, find ways to reduce or lessen your spending. You may also include building an emergency fund from the cuts from your expenses. This fund will be most helpful for future emergency needs.
5. Find out about overdraft protection available from your local bank. Usually, the bank charges you for this protection so it is important that you know how much it costs.
If you have tried all these things and are still unable to fill your need for quick cash, grab an application form for payday installment loans. It may be the most suitable option in times of emergency needs. However, handle this resource wisely and responsibly to make most out of it. Borrow only what you can afford and repay on time.