A pay day loan as enticing as it may seem in the moment. To receive that emergency cash you need to keep you afloat until payday. But an online payday loan is really a short-term, high interest loan that may trap you in a cycle of debt.
But hold on there needs to be better alternatives to payday loans, explore other available choices. Such as borrowing from family and friends, asking your manager for an advance or even utilizing a pawnshop.
All options that further prove that cash-strapped consumers might have more choices than they realise.
A pay day loan can really be a last resort if you can take a loan by opening a home equity loan or borrowing from a retirement account. But if those choices are too far-fetched for you, you can always sell clothing or household goods on OLX. And have any emergency savings as every tiny bit you place away inside a savings account provides a financial cushion.
Get a side job if you've a spare time activity or skill that’s sought after for example baking cakes offer the services you provide to people in exchange for money. Or if you've credit cards with available credit, use it to fund the purchase instead of taking out an online payday loan. But don’t make it a habit,
How does a payday loan lead borrowers into a long term debt trap it is a cycle that piles on fees and interest, making it harder to seek out. And just how is this its because consumers who turn to pay day loans many have limited use of credit, or don’t have a banking account.
