Payday Loan - Is there an Alternative?

There will be times in your life when you just need a little more money than you have. And you need it now! While payday loans offer one way out of this problem, it simply moves the deadline ahead and increases the need. The payday loan company will, if you have a job and a bank account at least three months old, allow you to write them a post-dated check for your next payday. Then they either hand you the cash or, more often these days, deposit the funds electronically into your account.

But, on payday, that money comes back out, including the charges for the payday loan. That's fine, if you have the money to do this. Payday loan companies are usually legitimate, with a few stinkers in the mix, and help people fill a need. If, however, you can't pay them back on time, the gloves come off. In many states, you can even be arrested for passing 'hot checks' if the money is not there when the payday loan company drafts your account. Even where you can't be arrested, you can and will be charged an awful lot more in fees.

So what can you do? First, talk with the person you owe. Even some medical clinics will let you give them a post-dated check instead of the payday loan company. If you have been a good tenant, and this is the first time you have had problems, many landlords will help. But don't count on it if you are new, or if you have done it before. A payday loan might be your only choice.

There are places you can go for emergencies without resorting to a payday loan. Forget the government. If you want anything from them, you have to apply six month's ahead of time and often fight five layers of bureaucracy before you get a dime. And free clinics are usually packed with very sick people!

So where do you start? In most communities, the local churches have organized a central food and clothing bank. Any church can tell you where it is. They might even make you a 'payday loan'. Some will still give money, usually by paying the bill you need. The Salvation Army is also a great source. They help with disasters both huge and individual. And they won't hound your relatives and friends to try to 'recover' money that was given to them!

Try a part-time job. There are many jobs on the Internet, using your computer at home. Some are OK, if you don't mind getting about $6 per hour and furnishing your own computer and separate phone line! On the other hand, there are some very good jobs on the net. (You could even be writing articles like this.) There is money to be made, but NOT if you are doing something any ten year old could. And jobs are certainly better than taking out a payday loan!

Don't give up hope! And, don't get caught up in the cycle of borrowing on your next paycheck. You'll need that money then, too. Check out every option before going for a payday loan. They can hurt as much as help.