7 Ways to Get Quick Cash Besides Risky Payday Loans

The holiday shopping season is coming up, and people in search of some quick spending capital might strongly consider bringing out a payday loan. Think about it — it’s a fast source of cash without the need for the credit checks and extensive protocols synonymous with personal lending. It sounded too good to be true.

That’s because it actually is. More than 19 million people struggling with their finances take out one of these unsecured personal loans each year without considering the danger signs pointing to their finances, like insanely high, triple-digit interest rates. “Unlike other loans, payday loans must be paid back in full on the borrower’s next payday at annual interest rates of around 400 percent,” wrote Melissa Rayworth over at TakePart. Rayworth also noted that upwards to 97 percent of people will borrow from a payday loan again.

Payday loan borrowers are also exposed to a downward spiral of debt that can last months (if not years), a wrecked credit standing and predatory, aggressive collection practices from debtors who want immediate repayment. “If you rent out a payday loan, you’re going to come out the financial loser almost every time,” wrote Trent Hamm of The Simple Dollar. “They nearly always cause more problems than they solve.”

Yes, people like this actually exist. Iowa-based Veridian Credit Union, for instance, offers a PAL with a maximum loan amount of $1,000 and a six-month repayment term at an interest rate of around 20% (usually regardless of a borrower’s credit score). While not the lowest interest rate, it’s more achievable than the high interest and short repayment terms of a payday loan. (Keep in mind, Veridian is a credit union that helps residents of certain counties in Iowa and Nebraska and a few other select groups — if you’re not part of its membership field, ask a community bank or credit union near you if it offers a comparable product.)

Another similar, yet less expensive option, is to reach your credit card carrier for a modest cash advance. Again, the interest rates might not be the lowest, but this fourth dimension, you’re borrowing against your own credit limit and not some third-party payday provider. If the cash advance option seems too insurmountable to you, just use your credit card for your holiday shopping, and avoid using it again until you’ve paid down your balance.

If the added interest of using your credit card is too much to deal with, you can always try getting just enough cash from your emergency fund to cover holiday shopping expenses. Since you work as your own lender here, this loan is entirely up to you to repay — but financial discipline is important. Let too much time go by, and you might never come around to replenishing what you borrowed, and you might not have enough money if a real emergency arises.

Your job might may permit you a cash advance taken from your next payroll check. It’s not a loan, and then you won’t have to deal with interest or repayment, since it’s money that you have earned. However, keep in mind that if you ask for $200, be prepared for your next paycheck to reflect that divergence. It’s also wise not to build a habit of asking for cash advances; taking frequent financial shortcuts could leave a bad impression with your employer. Request some holiday overtime; the extra hours can generate you some extra cash.

Now’s a better time than ever to betray some of those old things taking up space in your house. It could be anything from a used cell phone, to furniture, vintage clothing, appliances and more, a plenteous source of quick cash. Go the online route, like eBay, Amazon Marketplace or Craigslist. Visit some local pawn shops or thrift shops and see what kind of offer they’ll make for your items.

In the heart of the holidays, is there anything you can temporarily cut back on — or eliminate entirely — to gain some Christmas cash? Put your gym membership on hold for a month or two, cook at home more than eating out, and save on petrol by taking public transportation. Aim to spend less disposable income on clothes and entertainment, since this is the time of year for buying those things for your friends and family. Some financial experts even suggest setting the tax withheld from your paycheck so you’ll have more cash available now versus later.

This is not a source of “quick” money per se, simply if you’re in a cash crunch this holiday, open a savings account designed to save money for holiday shopping. Your bank or credit union of choice might have its own version that can grant you higher interest and generous deposit limits. Start now and deliver plenty of reserve money available by Christmas 2015, enough that finding an alternative source of cash won’t even be necessary.

Practice these tips as a start and brainstorm some more ways you might be able to save money during the holidays. Asking a friend or family member to borrow money can be a good option during a financial crunch or crisis, but it’s not always recommended. Even if the money is repaid on time, borrowing from a parent or sibling and then applying that money to purchase a gift for them isn’t very considerate. In this instance, opt for a more economical gift, or express your creativity by making your own. They’ll appreciate your gesture more than money can ever purchase.

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