Did you know the typical payday loan customer pays $793 in fees on a $325 loan? That's in addition to the original loan amount. When an emergency happens, you need quick cash, but there are far less expensive ways of borrowing.
Once you get caught in the trap of payday loans and check advances, it can be difficult and costly to get out. Avoid the trap altogether by exploring alternatives before handing a blank check to a payday loan business.
Talk to your creditors about extending your due dateWhen you know you won't be able to make your payment, call your creditor and let them know. Many will allow extend your due date without charging a late fee or reporting you to the credit bureau. Do the same thing for your utility and phone service.
Work some overtimeIf your employer allows it, work a few extra hours to get some overtime pay.
Do a side jobIf you have a hobby or skill that's in demand, offer your services to people in exchange for money. Erin Huffstetler, Guide to Frugal Living, has an extensive list of hobbies that earn money.
Ask your employer for a payday advanceIn effect, this is the same thing as a payday loan, but without the excessive fees and loan trap. Talk to someone in your human resource about getting an advance on your next paycheck. Keep in mind that getting an advance will lower your next paycheck. Some employers even give loans that can be repaid over multiple pay periods, lessening the effect on your take-home pay.
Sell or pawn things you no longer need
You can use eBay or Craiglist to sell off household items you don't need anymore. It's worth the sacrifice to sell things you may have a personal attachment to, like a pool table or grill. Some items can be taken to the pawn shop for a quick sale. Or, have a garage sell one weekend to unload multiple items at one time.
Adjust your tax withholding
Having extra money withheld from your paycheck so you can get a bigger tax refund is a bad idea when you're struggling to make ends meet. The IRS' website has a tax withholding calculator you can use to tell just how much tax should be taken out of your paychecks. Make sure you're getting enough taxes withheld, otherwise you'll end up owing taxes next April.Tweak Your Income Tax Withholding, About Financial Planning