Payday loan alternatives with low income

The definition of low income is “those earning less than twice the federal poverty line.” Depending on the number of people in the family, that number varies. For one person, the federal poverty line is $12,490. The poverty level for a family of four is $25,750. It's easy to see how people faced with an emergency benefit from cash advance loans online.

Recent years, though, have shown how payday loans have forced those beneath the poverty level to new lows of debt. When cash loans online became available, more and more people got on the bandwagon. Crippling interest payments forced more and more people to search for payday loan alternatives. What are a few of them?

1. Additional Time

Emergencies usually happen in the middle of the night, when the car is out of gas or out of commission the day before you get paid. When you apply for cash loans online, their repayment schedule typically happens when one of the main monthly payments are due such as the mortgage, rent, or car payment.

Creditors don't want to see you default on your loan due to repaying cash advance loans online. They don't want to resell the house or car if you can't make your payments. Creditors know what kind of interest you'll repay. One of several payday loan alternatives is that they will gladly work with you, giving you more time to make your payment and/or possibly lowering the payment over a couple months if it will help.

2. Community Efforts

The mortgage or rent can't be paid, there's no food in the house, and the car needs to be fixed. You got a payday loan to fix the car. Now you need help with the other two problems. Many community sources exist that help people in just these types of situations.

Payday loan alternatives include asking establishments like the Salvation Army for help. They have lists of community churches and businesses that offer funds to help meet the situations. They don't require repayment like cash advance loans online.

They might not be the amount you will get from cash loans online, but the funds will bring down the amount you owe. That will ease the situation somewhat, and the pressure and anxiety on you.

3. Personal Loan

Banks and other mainstream lending institutions saw the mess people encountered repaying crippling payday loans. They dropped lots of red tape in order to help people needing loans, even if they were cash loans online. They began actively welcoming payday loan customers.

However, credit still rules. Banks won't be able to help low-income persons with cash advance loans online. The loan seeker should look for community banks, credit unions, and loan institutions whose thresholds and acceptance rules for fast cash loans will be better.

Smaller lending institutions like these will be more flexible in their underwriting. They tend to offer lower interest rates in hopes of snagging community residents and helping their own customers.

4. Finance Yourself

One of the payday loan alternatives you might not have considered is to borrow against your life insurance policy, especially if it's permanent life insurance. Borrowing against your 401k or your IRA is another method of gaining fast cash instead of using cash advance loans online. A payroll cash advance or a credit card cash advance will also help you stay out of the clutches of cash loans online.

Conclusion

By now, low-income people know how debilitating it is repaying payday loans. However, mainstream lending institutions want to see sterling credit before they'll give you a penny. Low income and sterling credit don't usually collide in the same sentence, which is a source of anxiety for low-income persons in need of money.

Take heart, though, because there are many sources of payday loan alternatives. While we are not a lender, we will point you to those who may help.  Alternative suggestions are borrowing against your insurance and retirement funds, seeking help from small banks and credit unions, and asking for more time to repay other loans.