In the past five years payday loans have become enormously popular in the UK. More and more people opt for them every day. However, sometimes they find that such loans are actually not suitable for their needs and their own individual situations. This may be because the high interest rates, because of the short payback period or for some other personal reason. Thus, this article will presents you with some of the alternatives to the payday loan that might satisfy you after all. These alternatives are either in the form of some other loan or in the form of different other actions that you can perform in order to save or earn some money.
When it comes to the alternative loans, a good option is a Credit Union loan (London Mutual Credit Union). Actually, with some of their loans, their members can take up to £500 pounds a month. This amount is then repaid monthly, of course, with your next paycheck. In fact, every loan is connected to your cash account and five percent is automatically deducted from it and placed in your savings account creating for you a fund ‘for a rainy day’.
Another option that might turn out suitable for you entails loans from small banks. Actually, these banks often offer the same terms such as those of payday loans. However, the difference lies in the smaller interest rate and, not only do they offer a lower interest rate, but they also include no closing fees or costs such as penalties for prepayment.
Further on, we come to short-term installment loans. The main characteristic of this loan is that it allows you to repay the loan within the period of four to six months, unlike the payday loan that usually takes between thirty and forty days. Still, the rest of the process is the same as with the payday loan and you can apply for the short-term installment loan and get your money very quickly. It is also very convenient that, with this loan you can choose the option of closing the loan early and thus avoid the expense of the interest rate.
Apart from these various types of loans, you may also try to negotiate with your lender. In fact, you may work out the plan of repayment that will be more suitable for you. If you fail to reach any kind of favorable agreement with your company, you may also try with some other company that will lend you money to cover the debt of the existing loan and provide you with a better repayment plan.
To sum up, these are some of the most suitable alternatives for payday loans when. Any of the above mentioned types might just suit you, but still, it is highly advisable to thoroughly research before you make the step the details are what matters the most. The next sequel of this topic will deal with other alternatives which you may choose and which are not related to other loans.