YOU HAVE ALTERNATIVES RESPONSIBLE SMALL- If you are facing debt problems, you may feel that a payday LOAN CHECKLIST lender is your only option. Not true—you have a number of If you are searching for an alternatives to taking out a high-cost payday loan. alternative to a payday loan, look for these features.
❏ At least a 90-day repayment Payment Plan with Creditors term, repayable in The best alternative to payday loans is to deal directly with your debt. installments 1 Working out an extended payment plan with your creditors may allow you to pay o your unpaid bills over a longer period of time. ❏ No unfair collateral requirements (such as a car title) Advance from Your Employer ❏ Reasonable limits on Your employer may be able to grant you a paycheck advance in an renewals (you should not be 2 emergency situation. Because this is a true advance, and not a loan, able to renew a short-term there will be no interest. loan more than four times per year)
Credit Union Loan ❏ Full consideration of your Credit unions typically o er a ordable small short-term loans to ability to repay the loan members. Unlike payday loans, these loans give you a real chance 3 No mandatory arbitration to repay with longer payback periods, lower interest rates and ❏ clause in the agreement installment payments. AVOID THE DEBT TRAP Consumer Credit Counseling If you get behind There are numerous consumer credit counseling agencies throughout on a traditional 4 the United States that can help you work out a debt repayment plan loan from a credit with creditors and develop a budget. These services are available at union or bank, you little or no cost. The National Foundation for Credit Counseling (the borrower) pay late fees or (nfcc.org) is a nonprofi t organization that can help you fi nd a penalty fees only one time. reputable certifi ed consumer credit counselor in your area. The payday loan “debt trap” forces you to pay fees every Emergency Assistance Programs month. In the end, revolving Many community organizations and faith-based groups provide payday loan fees increase 5 emergency assistance, either directly or through social services your debt load and fi nancial programs for weather-related emergencies. hardship. This vicious cycle can lead you into bankruptcy, rather than helping you get back on Cash Advance on Your Credit Card your feet. Credit card cash advances, which are usually o ered at an annual 6 percentage rate (APR) of 30% or less, are much cheaper than getting BROUGHT TO YOU BY a payday loan. Some credit card companies specialize in consumers with fi nancial problems or poor credit histories. You should shop around, and don’t assume that you do not qualify for a credit card.
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