Football club brings attention to payday loans

People sometimes need help between paycheques, but there may be better alternatives.

10:54 01 June 2013

The Bolton Wanderer’s football club recently accepted a sponsorship from a payday loan company. This is attracting concern from some parties who feel that payday loan companies exploit their customers.

 

While there are some companies who may be guilty of such offenses, many others are trying to meet the needs of those who haven’t many alternatives. Here are a few payday loan alternatives:

 

• Friends and family-many people do not like to borrow from their friends or family, but since the interest rates charged by payday loan companies is a bit higher, striking a formal deal with someone in the family can help your repayments stay manageable. 

 

• Social funding-depending on your financial situation, you may be able to qualify for assistance from the social fund to try and help you over a difficult time period. There are a few schemes in place which can provide you with the money you need, without the payday loan type of repayment. 

 

• Short term loans-these are undoubtedly better for your finances than getting involved with a payday loan company. Interest rates will remain much better for those seeking alternatives. 

 

• Loans-loans from entities such as local grocers could give a superior one-stop shopping experience as well, allowing better interest rates, that similar payday loan companies  could find  difficult or even impossible to meet.

 

• Programmes-many people who are in need of the benefits of a short term loan such as a payday loan  are trying to cover groceries and utilities, but there could be special programmes available to assist with those necessities.

 

• Overdrafts-in some cases it could be more economically suitable to see if a banking institution has approved overdrafts. Approved ones typically have a much better interest rate than that of a payday loan, so repayment is much more feasible for many individuals and families.