Sometimes you may find yourself needing money so badly, the only solution seems to be a payday loan. However, then you remember the high APRs that come with payday loans and this doesn’t look like a good option anymore. If payday loans are unaffordable to you, you might want to look into the existing alternatives. Direct Loans Lenders has prepared a list comprising the best payday loans alternatives.

1. Borrow from family or friends

Sometimes borrowing from loved ones may be the best option, provided you have people around you who are willing to help, and you intend to pay back the loan.

Pros: No interest fees, no high APRs, no negative effect on credit score.

Cons: They may ask why you need the money, and your relationships may suffer if you don’t pay back the loan when you say you will.

2. Paycheck advance from your employer

Some employers may agree to provide a paycheck advance to an employee if he has a good reputation within the company. This is similar to payday loans, except without the interest and fees.

Pros: It is a payday loan equivalent with no fees included.

Cons: Not all employers will agree to a pay advance. Also, your employer will deduce that you are having financial problems, and may even ask why you need the money.

3. Adjust the payment plan with the creditor

If you need the money to repay a creditor, a better option may be to negotiate a new payment plan with your creditor. Statistics show that creditors are often willing to help out borrowers in reducing their debt.

Pros: You don’t need to take a new loan to cover an old one and you may end up with a smaller debt.

Cons: Sometimes there is an additional fee to change the initial payment plan.

4. Credit card cash advance

This may be the closest thing to a payday loans, but with more reasonable APRs. There are banks who offer credit cards for people with problem credit.

Pros: The APR is usually lower than in payday loans – 30%. If you pay off the balance by the following billing statement, it is possible to avoid interest altogether.

Cons: Not all individuals have access to this alternative. Their credit history is an important consideration when deciding whether to provide the credit card.

5. Consumer counseling agencies

If you are looking for money to consolidate debt, then you might consider a consumer counseling agency. These institutions specialize in providing assistance to debtors who are dealing with large unsecured debt, like credit cards and loans.

Pros: These agencies can negotiate with the lender on your behalf, and usually get you a more advantageous repayment plan. In addition they will also help you establish a budget and stick to it.

Cons: As with every alternative mentioned above, you cannot go to a consumer counseling agency every time you have a financial issue.

6. Emergency assistance programs

There may be special groups in your community who provide emergency financial help. Research social service programs that focus on assisting low-income individuals and families in paying their bills.

Pros: The help received from these institutions is usually free of charge and is not a loan, so it doesn’t have to be paid back.

Cons: Although you don’t have to return the money, you will likely be required to give something back, whether it is a membership in a social group that is faith-based or centered on some other common interest. It may require you to act like a model citizen, which is not a bad thing, with every single mistake treated with the utmost judgment.

7. Military loans

This is a good payday alternative to those in the Armed Forces, in the form of companies who specialize in providing loans to active duty and retired members of the military. The loans are usually given for between $500 and $10,000.

Pros: More advantageous interest rates, usually not exceeding 34.99%.

Cons: Available exclusively to the active and retired members of the Armed Forces.

8. Personal loans

These types of loans are more advantageous than payday loans. Personal loans are unsecured loans, which don’t involve collateral. The only guarantee of a borrower repaying the loan is the borrower’s signature. Personal loans have lots of advantages when compared to payday loans, including:

Pros: Just like payday loans, personal loans can be obtained online, through a simple and confidential application form.

Cons: The APR depends on a borrower’s credit score and might be higher for those with bad credit. Unsecured personal loans come with higher APRs than secured personal loans.

9. Installment loans

Installment loans are another quick and easy way to find relief from your financial troubles. They may be secured or unsecured, depending on your assets and your willingness to bring them into the picture. When an installment loan is secured, the APR will be lower than for an unsecured installment loan. Nevertheless, in both cases, you will get more reasonable interest fees than for payday loans.

Borrowers pay back installment loans according to a schedule, with fixed periodical payments, or installments. The interest rate will not vary from payment to payment so the borrower always knows how much must be paid back.

Pros: Fixed repayment schedule with a fixed periodical payment, no fluctuating interest rates and fees, longer loan term.

Cons: Sometimes, the long term can make borrowers feel indebted for a longer time.

Direct Loans Lenders offers installment loans, personal loans and other types of loans. You can get the cash advance you want by simply completing an easy online application form. This will be processed almost instantly, enabling you to find out if it has been approved within minutes. If approved, the money will be deposited into your bank account as fast as the next business day so that you can resolve your issues ASAP.

References and Sources

1. The Best Alternatives to Payday Loans. Retrieved from

2. 7 Alternatives to Costly Payday Loans. Retrieved from