Payday Loans – Why Should You Avoid Them and What Are the Available Alternatives for You?


A payday loan is a short-term loan given to borrowers between payday periods to help finance urgent expenses or difficulties. The loans are sometimes called cash advances or paycheck advances and is often limited to $1500 only. These loans carry very high interest rates. The lenders prey on the poor and uneducated and in true unethical fashion end up contributing to their inability to rise into another social class do to the crippling fees and wasted money.

Payday loans may seem to be an easy and quick solution for a short-term hiccup in your cash flow. At the right time and in the right place, a short-term loan to stretch your money until the next paycheck is sold as the best solution for many people.

Some debts are fun when you are acquiring them, but none are fun when you set about retiring them.” – Ogden Nash

In all honesty, this is a situation you want to avoid at all costs. Everyone should be living a lifestyle where they have 3-6 months of expenses tucked away in an emergency fund. If you are currently in debt or just starting that fund and find yourself in a position where you are contemplating a payday loan I urge you to avoid them at all costs.

Payday loans have traps and risks. In fact, all borrowed money comes at a certain cost. The cost of payday loans over the short-term, which is what they’re marketed as is frequently compared to the cost of taking a ride on a taxi. Like taxis, payday loans are very costly for a long trip, yet justifiable for a short haul occasionally. And it is in this justification that individuals get themselves in trouble.

No matter what the lenders might tell you, many people get stuck keeping the loan for weeks. More money will never solve money problems, especially borrowed money. The only thing that can solve money problems is a change in lifestyle.

Interest on debts grow without rain. -Yiddish Proverb

It is easy to recommend avoiding payday loans for the reason that the cost is expensive, yet it’s not simple once you are going to take action on this. But, with these following, you might find a way to avoid payday loans:

  • Debt Issues?

If you are experiencing a debt problem, it only means that your income isn’t enough for covering your outgoings and payday loans aren’t going to help. As a matter of fact, it will make the situation worse. Therefore, get the right advice and take advantage of debt counseling services, which are either paid or free. I suggest free.

  • Try Approaching Your Employer

Even if some people don’t think of this alternative as impossible, you might want to give it a try. Ask your employer to give you a paycheck advance. If it is a real advance of earnings for you, it doesn’t come with any interest cost, which is significantly cheaper than payday loans.

  • 0% Credit card offers

This would be the best option if your in a pinch. However, if you were considering a payday loan in the first place it may be likely that credit approval is an issue and these offers are typically reserved for those with high credit scores.

Considering those alternatives above can be of great help when avoiding payday loans. Although these loans are quick money, the interest rates might cause you a burden that would just ruin your cash flow in the long run. So, before it’s too late, spend more time thinking about the bad things about payday loans and never rely on them if possible.


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