Samurkas Group
Payday loans are widely used by people who find themselves in need of cash, but there are major issues with using them. So much so that some states have even banned them. If you are in a position where you are thinking about a payday loan it is a good idea to consider all of your alternatives first, you have several. A payday loan should really only be used if have no other options available.
The best alternative to payday loans is to simply make do without the money. A payday loan is by design a very short term loan that in most cases will be for less than two weeks. In most cases you should be able to get through that time without needing to have cash. It may take some sacrifice on your part but it can usually be done. One of the real problems with payday loans is that people tend to use them when they really aren't necessary. They should only be used in situations where you absolutely have to have money.
For most people the easiest alternative to a payday loan is a credit card. Almost all credit cards will allow you to take a cash advance. The interest rate will be very high but nothing compared to that of a payday loan. Really if you have a credit card and there is room available on it there is no reason that you should even be considering a payday loan. Of course most people who use payday loans aren't in this position and do need to look for alternatives.
One alternative that you have is anything that you have laying around the house that you don't use any more. If you never use it selling it might be a good idea, however in most cases you will find that pawning it is probably a better option. Pawnshops have fallen out of favor in recent years in large part because it is so easy to get a payday loan. However before payday loans were widely available people who needed cash would pawn an item. This allows you a source of cash at a much lower interest rate than you would pay for a payday loan.
In a lot of cases the best alternative to a payday loan is borrow from your family or friends. Most people hate the idea of doing this and will do almost anything to avoid it, which goes a long way to explaining the popularity of payday loans. However given the extremely high cost of a payday loan it may well be worth asking people you know for a loan. If you can get over the embarrassment it is a decision that will save you a lot of money and help to keep you out financial trouble. Since most people are also more scrupulous about paying back family it also tends to lead to better financial decisions.