PAYDAY LOAN ALTERNATIVES, PART 2

No one intentionally gets involved in the payday loan cycle. Most people are frantic to fund a particular unexpected expense and do not consider the longer term consequences of the payday loan, only that it solves the immediate problem. Almost any option beats a payday loan. To help others avoid the vicious cycle, I suggest the following alternatives to a payday loan:

Ask a friend or family member for a loan.
Borrow from a credit union or other small loan lender. Be sure you understand all the fees and terms before you sign.
Put off the expense until you have the money. For example, if you need money to repair your car, find other transportation until you have the funds to fix the car.
Request overtime or secure a part-time job to cover the unexpected expense.
Contact your creditor and ask for more time to pay or a repayment plan.
Use your credit card. Even if you have to get a cash advance it will be much less expensive than a payday loan.
To learn more about payday loans, the Consumer Federation of America has some great consumer information.

A final word in fairness to the credit counseling agency that you went to for help: Legitimate credit counseling agencies will work with all of your creditors to provide assistance. It is much more likely that the payday lender was not willing to work with the credit counseling agency to provide you with any assistance. My guess is that the huge payment they were demanding made a debt management plan impossible. Responsible creditors usually are willing to make concessions for someone who seeks help through a credit counseling agency. That payday lenders virtually never make concessions to credit counseling clients speaks volumes about their business model and makes them one loan to avoid at any cost in my book.