It is mid-month and the end of it will soon be with us where the purse will likely be full and almost empty immediately thereafter especially when you're hit with new unplanned expenses that throws your carefully planned budget out of proportion.
If you happen to find yourself in such a situation, of importance, is to spend time evaluating and weighing your overall financial options before making a decision that could complicate your finances further.
A case in point is opting for a payday loan which could potentially harm your short-term and long-term finances.
What's a Payday Loan?
A payday loan is a short-term loan provided by various lenders and have a term ranging from two to four weeks, or until your next payday. The main disadvantage of using a payday loan to get you to your next paycheck is that it may have long-term negative results, including paying an excessive amount of interest on the loan taken.
Payday lenders don't usually require a credit check or proof that the borrower has the means to pay back the loan. But despite their seemingly easy access, payday loans can result in a cycle of costly debt for borrowers.
Borrowers who seek out payday loans will mostly be from the underbanked populace or those with limited access to other financial tools that provide better financial options.
Alternatives to Payday Loans
If you need cash to help you cover expenses until your next paycheck, below are three alternatives worth considering as opposed to going for a payday loan.
a). Apply for a personal loan.
Digital lenders like OKash, CreditHela among others may be more than willing to lend you the money you need, regardless of how you intend to spend it.
All you need to do is to, for instance, download the OKash loan app here and find out if you qualify, even when you are aware you have a fair or poor credit score.
b). Reach out to friends and family.
If you need a smaller amount to get you to your next paycheck, consider asking a family member or close friend for a loan. Even if it's an uncomfortable conversation, this could be a better option to a payday loan.
c). Talk to your job's human resources department.
Some employer may provide salary advances or short-term loans to their employees. Others may have short-term financial resources to connect you with relevant lenders that may be able to help you.