Image coutesy of Chika Watanabe
Image coutesy of Chika Watanabe

There are many people that think that a payday loan is a bad thing. Although others may say that they are not so bad, they can tend to be very expensive. There may be alternatives available that you could consider instead, before borrowing money at such a high rate.

If you have a credit card or an overdraft then it could be more sensible to use these. Although the interest rates on these can be high, compared to some other types of loan, they can be better than a payday loan. If you pay them off quickly, they are not that expensive and credit card could even be free of charge if you pay it back in full when required. However, if you take a long time paying it back, the interest can build up and make it a very expensive way to borrow.

A personal loan can be cheaper, but these tend to be for higher amounts than payday loans. You will also often need some collateral for these, perhaps a home or car, which you may not have. It is not always a good idea to borrow more than you need either as you may find that you spend it and then have difficulties in paying back the loan.

If you have friends or family that have money, then it could be worth asking them whether they will lend you some. This could be difficult as you may feel that it will put a strain on your relationship or cause them financial difficulties if you cannot repay the money. This will need to be carefully considered before you ask them.

It may be possible for you to wait for the money, rather than borrow it. Depending on what it is for, you may be able to wait until you get paid next before you have to pay out the money. This will depend on what it is and whether you can manage or negotiate about it.

You may have something that you could sell to make money. It is easy these days to sell things on social media or auction sites and you may find that you can raise enough money in a short enough time to get what you need.

It is also easier with the Internet to do freelance work. You may be able to do some work for a while and make enough money to cover what you need. You may even be able to help closer to home, perhaps some gardening, DIY or jobs like this which could just put enough money in your pocket to help out. If you are always looking for opportunities to earn a bit of extra money, then it can be reasonably easy to find something, particularly if you are prepared to put your hand to anything.

If you can be inventive and think of ways to earn extra bits of money or spend less, you may be able to generate enough to make it unnecessary for you to need to borrow the money at all or at least allow you to borrow less. It is certainly worth giving it some thought.