Don't Panic - A No Payday Loan May Just Be Your Answer

Everyone has found themselves in a tight fix at one time or another when an unexpected bill or expense arises that really has to be paid and you have no payday for at least another week or so.

If your credit scores are to low then you can't easily go into your local bank and get a small, short term loan. Even if your credit scores are good banks aren't typically interested in making loans in the amount of a few hundred dollar and especially for a period of just a few weeks. They might be willing to set you up a line of credit but would want some type of collateral; like a CD or equity in some real estate you own.

Most people whose budget is stretched to the point of just making it from pay check to pay check are not really in a position to deal with a bank for a loan regardless of their credit rating.

One option for getting the money you need is to borrow the money from a friend. However, during these economic conditions most of your friends are probably in the same bad financial conditions that you are in.

If you have parents then you might hit them up for a loan if you haven't already worn out your welcome borrowing money from them.

You could ask your employer for a payday advance. If you work for a small business where you have direct contact with the owner then this might be a viable alternative. Just don't make a habit out of it. It will get old quickly with your boss and you might wind up losing your payday all together.

If you work for a larger company then they probably have a companywide policy against this type of activity. It could balloon into a bookkeeping nightmare for them if they have a lot of employees.

Like all loans payday loans require you to pay interest on the money borrowed. This interest rate is usually higher than money borrowed from a bank; but like we said earlier banks are usually in the business of loaning money for such a short term.

The interest rate may be the least of your concerns depending on what your need for the money is. If your utilities are about to be cut off then that may be much more important to you than the interest that you are going to have to pay on the money borrowed. If you don't pay the bill and let your utilities be disconnected then there will be a reconnect fee charged by the utility company which may in fact be more than the interest you will have to pay on your payday loan; not to mention the inconvenience to you and your family.

There are some alternatives to consider before getting a 'no payday loan'. If you have a credit card you could get a cash advance. You might want to compare the interest rate for this service vs. the payday loan. Other sources might be to ask for assistance from some charitable service in your area. This assistance is not typically something that you have to pay back.

You could bounce a check and pay the NSF fee later. Once again compare the fee for this against the payday loan interest rate. Also, this might not be a good idea depending on where you work. Many banks will fire an employee who bounces a certain amount of checks within a certain time period.

Without payday loan services then some people will have no source of getting a short term loan.

If you decide a payday loan is your best option to solve your immediate problem then take advantage of this service that is available to you.

The important thing is to not make this a habit. You shouldn't get yourself into a position of having to borrow money in order to get to the next check each week. Borrowing money and paying interest should only be done when you absolutely have too.

If you find that you consistently don't have enough money to pay your bills then you need to sit down and seriously evaluate where you stand. You need to either eliminate some of your expenses or start bringing in more money. Maybe you need to get a cheaper place to live or a smaller car payment.

Maybe you need to consider a second job. There are a number of ways to earn rewards or make money on the internet that can be done on your own schedule. You might look into some of these.

Another thing to consider is to start saving money by using coupons. There are coupons online that you can print and save on most everything now a days. Most people thing of groceries when they hear coupons and that is one place to use them. But, they are available for fast food restaurants, retail stores, office supplies and much more.

If you need a no payday loan then by all means get one. Just be sure to take time to look at the big picture of your financial situation and see if saving with rewards and coupons might be a help to you also.