If you have a credit card with an available balance, you can use that to pay for the emergency or take out a cash advance
What some people aren’t aware of is that pay cheque loans don’t have to be a solution to financial shortfalls – it pays, literally, to consider other options. To start, if you have a decent relationship with your creditors, it doesn’t hurt to ask them if they’re willing to extend your due date. If you know you won’t be able to make your payment on time, call them and let them know the soonest you can. If you ask, most creditors are willing to work with you to extend your due date or set up a payment arrangement so you can make a series of smaller payments.
Another option is to ask your employer for an advance on your paycheque. If you work for a small company with flexible policies, they may be willing to give you a payday advance, which is the same in principle as getting a payday loan, but without the excessive fees. However, you also have to keep in mind that getting a payroll advance will also lower your next paycheque.
You’ll have to swallow your pride by asking those close to you for help, but it won’t be nearly as expensive as going to a payday lender. But, getting a cash loan from a friend or family member can be tricky, because if you don’t pay back the loan as agreed you can check here upon, it could damage lifelong relationships. So, if you ily or friends, be as serious about repaying the money as you would pay back the bank or a business lender.
Although you’ll still have to pay a fee and interest for taking a cash advance on your credit card, it’ll be less costly than a payday loan. Bear in mind that cash advances do have high interest rates (averaging about 30% annual interest), so make sure you don’t charge anything else on the credit card and that you pay off the balance as quickly as possible.
If getting a meal from a soup kitchen or some cans of food at the food bank can save you an extra $20 or so to help you pay off payday loans, it’s certainly a move worth making
If you’ve exhausted all these options and you’re still short on funds, it’s time to start looking at your budget. You can decrease your monthly expenses by cutting down on things such as food and groceries (pack a lunch to work or swap meat for a less expensive protein like tofu or eggs), minimizing transportation costs (take public transit, carpool, run errands on a single trip to avoid unnecessary driving), and scaling back on entertainment (borrow DVD’s from the library, hold a games night instead of going to the movies). Here are more ways you can save money and pay off debt.
To further boost your cash flow you can consider clocking in overtime hours at work or getting a side job. Not only will the increase in income help you pay off your payday loan, it will also help you start saving money so you won’t have to turn to payday loans again. If you have a hobby or a skill in great demand – such as baking or photography – you can offer your services to people in exchange for money. Also, if you have a garage full of household items you no longer need, you can sell them on sites such as Craigslist or Kijiji. Not only will you get a source of money, but you’ll also be clearing away clutter in your home.
Turning to community resources for help is another option worth considering. Food banks and soup kitchens exist in communities for a reason: they’re there to help people who are in a tight financial situation and are struggling to get by. Many people have turned to these resources when they were in need of a helping hand, and if you find yourself in need of help, these resources are here for you.