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Payday Loan Alternatives

Are you in a financial bind? 

Bankrate reports that predatory lending is on the rise. A majority of Americans are living paycheck to paycheck. Personal loans among consumers are higher than ever. Though not all are predatory, payday loans are designed to be repaid on a borrower’s next payday. They’re easy and fast but often come with hidden fees and extremely high-interest rates. They can also trap victims in an endless cycle of debt. Average 2-week payday loans carry an annual percentage rate of nearly 400%. A person with good credit can typically get a loan for just over 10%.

Thankfully, there are alternatives. Try a credit card – rates, though high, but they’re better than payday loans. Try a credit union. Their interest rates are lower than traditional loans and some offer PALS – that’s payday alternative loans. These $200 to $1,000 loans for up to 6 months have an interest rate cap of 28%. That’s far better than 400%! It’s best to consider selling personal items to cover your immediate needs. However, another option isn’t easy but sometimes necessary. Ask for help. Your employer may be willing to advance your pay. Your church, small group, friends, or family may delight in helping you through a rough time. James 4:10 says, “Humble yourselves before the Lord, and he will lift you up.” All borrowing comes with risk, so be wise in who and how you ask.

If you’re trapped by payday loans and credit card debt, contact Christian Credit Counselors. They’ll create a debt management plan just for you. For more information call the Crown Helpline: 800-722-1976 or visit online at