Before You Get a Payday Loan

Don't make the mistake of rushing into half price payday loans before even considering your options. Here are a few things to think about before you borrow.

Weighing Your Options

Even in financial emergencies, half price payday loans are not the only option available to you. There is nothing wrong with taking out a payday loan when you're truly in need, but you should only do so after evaluating all of the alternatives. Make sure you've pursued the following avenues before you jump into high-interest debt:

1. Apply for a small personal loan from a credit union or bank. Some banks and small loan companies might be able to offer you the money you need at lower interest rates than those of half price payday loans. Credit unions typically have lower rates than other lenders.
2. Pick the loan with the lowest cost. When you consider your borrowing options, make sure you compare APRs and finance charges. The finance charge usually includes interest, fees, and other costs. Choose the loan with the smallest total cost. For example, if you have the option available to you, you might consider a credit card cash advance, but you should avoid this option if the APR is higher than that of payday loans.
3. Ask your creditors for more time. If you need half price payday loans in order to pay your bills, try calling your creditors to explain your situation to them first. Many creditors are willing to work with borrowers to make a payment plan. You might face higher interest rates, finance charges, or late fees, but you might also get more time to pay your bills.
4. Think about credit counseling. For some borrowers, the need for half price payday loans seems to be a recurring theme rather than a rare occurrence. In this case, credit counseling might be in order. Credit counseling is a low- or no-cost service provided by community non-profits to help consumers budget and get out of debt.
5. Investigate overdraft protection. When money gets tight, you don't want to exacerbate your financial problems by flooding yourself in bounced check fees. If you tend to cut it close with your checking account, you should look into overdraft protection to save yourself the expense of overdrawing your account. Ask your bank what such protection would cost and how it works. Some banks tie the account to a credit card that is charged when the account is overdrawn, while others pull the necessary funds from the customer's savings account.
6. Budget and save. The way to stop borrowing half price payday loans for good is to budget, save, and plan. Make a budget to avoid wasting your money on small, superfluous purchases that add up, like gourmet cups of coffee. Also work on beefing up your savings to buffer your cash flow when unexpected expenses strike.