Alternatives to payday loans

Payday loans are not the sole alternative to consumers with debt problems. There are several options to payday loans like small savings, salary advance from employers, Singapore personal loan from friends, relatives, social agencies or credit card advances. Besides a lot of licensed money lender have devised lower cost options to payday loans which have good repayment terms.
payday cash loans
Advances from employers
Some employers give paycheck advances to their employees. Since this is a real advance and it is not a loan, no interest is charged and the advance is thus cheaper in comparison to sg personal loan.
Consumer credit counselling
There are several consumer credit counselling institutions all over the country which can assist consumers in working out debt repayment plans with creditors or in developing budgets. These services can be obtained at little or no cost.
Credit union loans
Several credit unions provide short-term, small loans to their members. Some credit unions also give free saving plans and financial counselling to help their members. Other credit unions also provide loans of very low interest rates with quick approval during emergencies. Unlike payday loans, loans of this type give borrowers a chance to repay with instalment payments and prolonged payback periods.
Emergency assistance programs
Many community organizations and faith-based institutions give emergency help either via social services program or directly.
Small consumer loans
Small consumer loans moneylender provide short-term, small cash loans which cost up to 60 percent APR, often in 25-36 percent range. Loans of this type are also cheaper in comparison to payday loans. An individual can borrow $1000 from a firm for a year and pay $200 or $300 less as compared to payday loans over a similar period.
Payment plan with creditors
The best option to payday loans is for borrowers to deal with their debt directly. Many creditors often negotiate partial payments in case a payment plan is available. Working out payment plans with creditors may enable borrowers to adjust billing and pay off bills for a longer period.
Cash advance on credit card
Credit card cash advance interest rates which are provided at approximately 30 percent APR, are cheaper as compared to obtaining payday loans. Some credit card firms specialize in clients with poor credit histories or financial problems. Consumers need to shop around and should not assume they are not qualified for credit cards. Secured credit card is another alternative. Secured credit cards are tied to savings accounts. The money on the account is what “secures” the amount which is charged on the card. After a consumer has used the secured card successfully for a given period, then he can qualify for regular unsecured credit cards.