How to Avoid Predatory Payday Loans During the COVID-19 Pandemic
The coronavirus pandemic has altered the world’s normal and introduced quite a number of uncertainties in its wake. Nobody knows if or when they’re going to get laid off, salaries are being cut, businesses moving slowly, bills piling up, everyone is scrambling to get through each day, which is why the temptation of quick relief in the form of payday loans is stronger now more than ever. But hear me out, DON’T DO IT! And I’ll tell you why.
The thing about this loan facility is that it can be extremely difficult to pay off because of extraordinarily high-interest rates and how short a term it allows. You’re either going to be forced to take up more loans to get by or stop taking and watch yourself sink into the claws of debt and starvation with impending lawsuits brewing. If you find yourself close to the payday trap, Get Out! How? Let’s talk about it.
Here are a few practical alternatives to payday loans:
Paycheck advance apps. There are several apps that offer almost instant cash advances at reduced rates but the apps need confirmation of employment before disbursement. Some of the best apps for this short term relief include Flexwage, PayActiv, Earnin, Daily pay, and Pockbox. Money available for borrowing can vary between 100 to 500 dollars and processing can take as little as 30mins.
Help from family or friend: Old but gold, this method is still one of the safest ways of raising emergency funds. Depending on your closeness with the person, you can either get the money as a gift or borrow with little or no interest. I’m sure we all know a rich uncle, aunt, or cousin somewhere that can lend us money. It’s better to call them up than to contemplate payday loans. Note that borrowing from a family member or friend might seem like the easiest way out, you must be careful not to sacrifice relationships on the altar of debt.
Credit unions: if you have a good credit standing with credit unions, then why not take advantage of it and seek their help? Credit unions are known for flexible payment terms and relatively low-interest rates. The only hiccup is that it may take weeks to process your application and more damaging, they report default in offsetting debt to credit bureaus. This would have a long term effect on your credit score.
Charity organizations: these are hard times, and there’s no need to live in denial of our financial struggle. If things are becoming increasingly hard, the last place you should be looking at is a payday loan but instead, swallow your pride and seek out charity organizations that may be in a position to help you get through this pandemic.
If you are caught in the clutches of a predatory payday loan, you need help immediately. Do not wait for things to get out of control. The attorneys at the South Florida Debt Relief and Education Foundation protect people like you from predatory lenders at no cost to you. Contact the South Florida Debt Relief and Education Foundation today for a free consultation and take back control of your financial future.