Payday loans with low interest rates: Do they really exist?
Do you need cash fast? You may see companies offering payday loans with low interest rates, but is there a catch? Discover the answers here.
Let's say you're stuck in this situation: you've got an unexpected $300 bill come up. This wouldn't be a problem, but your next payday is only ten days from now. The bill, however, is due at the end of the week.
What do you do if you don't want to be delinquent on the payment?
Many folks faced with this situation turn to payday loans. These short-term, unsecured loans can help many struggling professionals get back on their feet.
However, finding payday loans with low interest rates isn't as easy as one might hope. In this article, we'll give you some basic principles to follow to teach you how to get a payday loan at the best rates possible.
Consider Peer to Peer Lending
One of the unconventional strategies that you can employ to find a low-cost payday loan is to consider using one of the many online peer-to-peer lending platforms. These take out the fees and overhead costs of an institution from the financial loan arena.
With peer to peer lending, you borrow money directly from a peer. The peer understands the risks of such a loan. There is an interest rate charged, but these interest rates are often several percentage points lower than your typical payday loan. It isn't unusual to see payday loans with interest rates above 10%, while many peer-to-peer loans will be available at interest rates below that.
Talk to Friends and Family
Another way to avoid an institution's high interest rates for a payday loan is simply to borrow money from friends and family. Some folks may choose not to mix finances and friendships, but sometimes when you're in a dire situation you have to consider this alternative in order to save money on your loan.
A friend or family member who is in a good financial spot and trusts you will often be able to provide you with a short-term loan at a much lower interest rate (if any).
Use an Installment Loan for Large Sums
Last but not least, if you have to borrow a significant sum of money, consider using an installment loan to finance this debt rather than a payday loan. Remember that a payday loan has to be paid back all at once. With large sums of money, this isn't always practical.
Enter installment loans. These work just like how your car loans or home loans work — you pay back the principal over time, with an amount of interest. Because the principal for installment loans is typically higher than a few dollars, the institution offering an installment loan will do so at a lower interest rate than your standard payday loan.
Payday Loans with Low Interest Rates Are Out There
There you have it — now that you know how to secure payday loans with low interest rates, all that you have to do is go out there and implement this advice that you just learned to finance your debt.
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