Cash strapped Australian can avoid sky high interest rates on payday loans by considering alternative to payday loans. One in five Australian households has used payday loans in the past three years and has put themselves into deeper debts. The increasing cost of living and limited income is responsible for pushing salaried class individuals to take up payday loans to remove financial stress from their life. By relying on payday loans, people usually get caught in a downward debt cycle. Today thanks to the growing financial market and digital innovation in the world, a range of low-cost financial options are available that may help you pay for small unavoidable necessities with ease.
With restricted monthly in hands, it becomes tough to meet ends month to month. Issues such as small unforeseen emergencies demands quick fix and of course when you are living your paycheck to paycheck, things may turn unpleasant for you. Fortunately, there are some alternatives that are designed to help you in small emergencies, so that you can pay for your necessities without any delay.
Some Of The Smart Alternatives To Payday Loans Are-
Loans From Employers– When you are running out of sufficient funds from your fixed monthly income and have small urgent bills lined up to pay, then taking help from your current employer can be a good idea. Do not hesitate to contact your Human Resource Department to ask for such facility. The employer usually advances you extra cash against your next paycheck.
Borrow Money From Family And Friends– If you avoid the embarrassing part, it is not at all a bad deal to ask for money from your near and dear ones. It is normal to feel nervous about asking any sort of financial help but your loved ones only understand the struggle you are going through with and may come forward to help you with sufficient funds. The best thing about taking money from your family and buddies that don’t need to pay any interest rates. Just be sure of repaying the borrowed funds on time and avoid putting your relation at risk.
Take Up A Loan From Credit Unions-These Credit Union organizations offer financial loan and credit to their customers. If you are a member of their organization, then you can avail the profits of your savings in your cooperative. By knowing the policies of your credit union and ruling authorities you will not be charged exorbitant interest rates. Having a loan with lower interest charges than other loans will make it an ideal option in bad times.
Borrow From Your Savings– If you have emergency funds or savings in a bank, try using that option at the hour of crisis. This will help you to get over with temporary financial turmoil with ease. It is a good habit to save money for emergencies. If you don’t have one yet, then start doing it now as it will be your lifesaver when financial trouble comes.
Pension Loan Scheme– Such kind of scheme provides a line of credit to people receiving a part pension. It usually offers fortnightly payments either for a short period or indefinitely. Such kind of loan acts like a pension and so can be used for a day-to-day living costs or other expenditure.
Go for StepUP Loan– It is a low-interest option for the Australian people on a small income. Such kind of program is managed by Good Shepherd Microfinance, and the loans are provided by National Australia Bank (NAB).
Good Shepherd Microfinance No Interest Loan Scheme– Such kind of scheme provides small, interest-free loans to help people from Australia on a low income. Money obtained with this scheme can be used for vocational training, white goods or medical expenses.