 TITLE: 10 Alternatives to Payday Loans CONTENT: What Are Better Alternatives to Payday Loans?\n---------------------------------------------\nThankfully, a payday loan isn't your only option for quickly accessing cash. Here are 10 better alternatives.\n### 1\\. Consider a Payday Alternative Loan (PAL)\nCredit unions that are members of the National Credit Union Administration offer payday alternative loans (PALs). You could use money from a PAL to avoid a payday loan or to pay off an existing one. Lower-cost PALs give a borrower more time to pay off a loan than a payday loan does.\nA credit union can charge an application fee of up to $20 for a PAL. PAL amounts can range from $200 to $1,000, with the payoff period lasting one to six months. As many as three PALs may be given to the same borrower during a six-month period, as long as no PAL overlaps or rolls over.\nCommonly, credit unions offer PALs with APRs comparable to that of credit cards.\n### 2\\. Apply for a \"Bad Credit\" Personal Loan\nInstead of getting a payday loan, you may be able to qualify for a \"bad credit\" personal loan. A number of lenders offer these loans for amounts that range from $500 to $10,000. However, APRs can commonly be quite high, and you may wind up paying an origination fee or other charges too.\nUnlike home and auto loans, these loans don't require you to put up property as collateral. They typically require a credit check.\n### 3\\. Borrow From Family or Friends\nIf you're in a financial bind, a family and friends loan may be a great way to dodge a high-interest payday loan. In fact, you may even be able to borrow money with no interest.\nRegardless of the interest rate you decide on, put your loan agreement in writing. This contract should include the amount of money you're borrowing, the interest being charged or the collateral being used, the payoff period, and the payment amounts and due dates.\nFailure to repay a loan of this type won't hurt your credit, but it can result in legal action and a severed friendship or strained family relationship.\n### 4\\. Ask Your Creditor About a Payment Plan\nIf you're short on cash, borrowing more might not be a great option. Instead of going down that road, you might try asking your creditors whether they'll put you on a payment plan.\nUnder this kind of plan, you agree to pay a smaller amount of money each month over a certain period of time. While you might end up paying more interest under a payment plan, it could ease your current cash crunch without causing you to take on more debt.\n### 5\\. Seek Help From a Credit Counselor\nA nonprofit credit counseling agency may be the way to go if you feel like you're swimming in debt.\nA certified credit counselor can help you pay off your debt faster, lower your interest rates, work with you on a household budget and improve your financial situation. Depending on which services you utilize, nonprofit credit counseling agencies may provide their services at little to no cost.\n### 6\\. Get a Side Hustle\nDo you have a little extra time on your hands? If so, you may be able turn that time into cash through a side gig. Here are a few examples:\n*   Become an online tutor.\n*   Sell unused or retired clothing online.\n*   Do part-time freelance work, such as web design, writing or graphic design.\n*   Drive for a ride-hailing service like Uber or Lyft.\n*   Sell craft items that you make, such as quilts or jewelry.\n### 7\\. Consider a Low-Interest Credit Card\nAlthough your credit may be a bit wobbly right now, you might be able to get a low-interest credit card (or at least a card with an APR that's considerably lower than the APR for a payday loan). Use Experian CreditMatch™ to see whether you can qualify for a low-interest card. If you're having a hard time paying back credit card debt, a balance transfer card can give you some breathing room. You'll typically need good credit or better to qualify for a credit card with a low interest rate.\n### 8\\. Explore Lending Circles\nAs a member of a lending circle, you can borrow money from other people at no cost to pay off high-interest loans, cover emergency expenses, buy a car and so forth. A lending circle includes six to 12 people. Loan amounts range from a couple hundred dollars to thousands of dollars. Mission Asset Fund operates one of the most well-known lending circles.\n### 9\\. Investigate Peer-to-Peer Loans\nPeer-to-peer loans are available through online platforms, such as LendingClub and Prosper, that match potential borrowers with investors willing to issue loans. At Prosper, APRs range from 7.95% to 35.99%. LendingClub advertises APRs from 7.04% to 35.89%. Keep in mind that peer-to-peer loans typically come with fees based on the percentage of the amount you've borrowed.\n### 10\\. Look Into a Cash Advance From a Credit Card\nA credit card cash advance typically charges a lower interest rate than a payday loan. Keep in mind, though, that the APR for a cash advance from a credit card may be higher than the APR for purchases made on the same credit card. You'll also be charged a fee for withdrawing a cash advance (3% or 5% of the amount borrowed is common). Beware of the potential to increase your credit utilization (which can hurt your credit) and accrue large fee and interest charges, however. END