Have you heard about the dangers of payday loans?
While they might seem like a smart choice they often come attached with massive interest rates and expensive hidden costs.
That’s why it could be worth exploring alternative possibilities if you’re struggling with unpaid bills.
Here are the options we suggest.
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Talk To Your Creditors
If your issue with cash flow is temporary then it can be worth speaking to your creditors.
They might be more reasonable than you think and could provide you with ways to make your payments more affordable and manageable, at least temporarily.
Take Out A Loan
You can think about taking out a loan from a bank or even a credit union.
If you do this, you need to make sure that you can cover the payments.
Don’t forget, an extra benefit here is that it could improve your credit rating.
Use The Emergency Fund
You might also want to dip into your emergency fund if you have one.
Ideally, you should be saving a little each month to save for rainy days like this.
Explore A Cash Advance
While you will always be charged interest from day one on a cash advance they will be nowhere near the insane rates charged for a payday loan.
As such, this can be an option worth considering.
Use Your Credit Cards
You might also want to think about using your credit cards to pay off the debt.
You just need to make sure that you don’t get into the habit of relying on plastic because this can lead to a whole heap of other issues.
You must keep up with payments if you want your credit score to remain healthy.
Utilize The Assets
It’s possible that you have valuable assets and if that’s the case, it could be time to think about selling them off.
This can free up capital and allow you to quickly pay off any debt that you have accumulated.
Look At Protecting Your Overdraft
Or, you might want to think about applying for overdraft protection.
You can do this on your chequing account and even though this will again come with interest, it will still be a lot less than a payday loan.
It’s also a far better option than simply letting cheques bounce.
Borrow From Those You Know
Finally, you can think about borrowing from someone close to you instead.
While this may seem embarrassing the key benefit is that you won’t have to worry about any interest at all.
This makes any loan like this easier to pay off and it’s just a matter of swallowing your pride.
We hope this helps you understand some of the best ways to avoid the dreaded payday loans.
If you need more support with your debt, make sure that you get in touch today.
A friendly member of our team will be happy to assist you further.
Information on Consumer Proposals
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Consumer Proposal Eligibility
What Debts Are Erased in a Consumer Proposal?
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How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?