Responsible non-traditional lenders, such as Maxlend Loans, strive to educate potential clients on ways to avoid utilizing their services. They recommend consistent saving habits, other avenues to get money fast, and alternatives to payday and installment loans. The acknowledgment that rates are exorbitant and late fees can lead to more debt adds to the transparency of best business practices.
Some Ways to Plan Ahead
A small savings account can make a huge difference when an emergency arises. People who do not have much to place in an account every payday will sometimes not bother. That is a big mistake. Even a little bit of money saved will add up quickly. If the total will not pay for the entire emergency, it will definitely reduce the amount that may have to be borrowed.
Try not to max out every credit card. Leaving some credit available for a cash withdrawal can eliminate the need to borrow any money. Credit card interest rates are high, but nowhere near as high as rates for non-traditional loans. The problem is that people tend to buy whatever they want with their credit cards, making them useless in real times of need.
Other Borrowing Options to Explore
Ask a friend or family member for a loan before resorting to applying with a non-traditional lender. The situation may get awkward, so be prepared to pay back the loan fully in the agreed amount of time. That will keep relationships intact and may provide a resource for the future. Try applying for a loan with your credit union. The process is faster than applying at a bank, and the rates are significantly lower. Members in good standing are likely to be approved within a few hours or the next business day.
Check with the boss to see if an advance on regular pay is possible. It may or may not be, but companies with an employee assistance program can offer short-term loans at affordable interest rates. Loans are easy to get and require few minimum requirements, but that does not mean they should be used on a regular basis. The costs will add up fast and be much higher than any other alternative.