5 Alternatives Urgent Personal Loan to Consider

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urgent personal loans
urgent personal loans

If you’re in need of quick money, you might be thinking of getting urgent personal loans along the line of payday loans or same-day loans, but most time, getting these types of loan aren’t worth it just because of how expensive they are.

That being said, there alternatives that would be so much better for your financial situation in the future instead of trying to get an expensive urgent personal loan from them. Even if it’s just a small amount of money. It can still potentially trap you into a debt cycle that you obviously don’t want. So, what are the alternatives then?

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  1. Check out your local nonprofits and charities

Local funding sources like community centers and other nonprofits are especially helpful if you’re having trouble balancing groceries, gas, and other necessities in your life accompanied with a new emergency. Some of these organizations can be a resource for donated food clothing, bus tickets, or even job interviews.

Two things to keep in mind though with getting your money from nonprofits and charities instead of an urgent personal loan is that the of you getting the help you need will vary depending on the organization that you’re asking help from. So, go give them a call first to find out how long you have to wait.

Local nonprofits and charities also sometimes require a proof that you are indeed in an emergency and that you don’t have the money necessary to make it through that emergency. So, just show up your most recent pay stubs and you’d be fine ninety-percent of the time.

  1. Getting help with medical bills

If the cause of your emergency is medical bills that forces you to get an urgent personal loan, there are still other options for you to try before you actually get that expensive loan yourself.

  • Advocates

Having a medical bill advocates can help you negotiate the bills down to a more manageable level after an expensive procedure or hospital stays. They can also help you with spotting some costly errors and then dispute them to help you get that lower price.

  • Payment plans

Before deciding on getting an expensive urgent personal loan, ask your doctor’s office if you can set up a payment plan that will split your larger, expensive bills into smaller monthly payments.

  • Credit cards

If you have medical credit cards, consider yourself lucky because some medical credit cards offered through your doctors’ office have an interest free promotional periods that can help you cover for that expense.

Each of these options vary in speed, but setting up a payment plan is most of the time can be done in a short amount of time by calling your doctor’s office.

And last thing to keep in mind about this point is that each and every one of them has some fee of some sorts, so calculate how much you’d save against the amounts you’re required to pay in order for you to get that net-positive at the end of the day.

  1. Borrowing from a credit union

If you’re an existing credit union member, you have a good option already at your disposal instead of trying to get these urgent personal loans. Credit unions look beyond your credit score and instead evaluate your standing with the company, the income you currently have, as well as your credit history to qualify for a loan.

Some credit unions even offer payday alternative loans. While not very common, if your credit union do offer them, you can borrow a small amount of money usually up to $1,000 with a maximum interest rate of 28% with a few months to repay. This in our opinion is leagues better than urgent personal loans like payday loans with very high interest rate.

Credit unions, just like banks may take a few days or one week to process your application to fund a loan, so if you need the money next day, keep reading down below for other options.

Credit unions also reports your late or on-time payments to the credit bureaus, so if you want to build your credit history as well as paying the matter that requires urgent personal loan, this becomes a good option for you.

  1. Create a lending circle

If you want to, you can form a lending circle with a group of people that you absolutely can trust. While it is still somewhat of a long-term commitment, you can still raise money for something like car repair or get you through your hardships right now.

Depending on whether you use a website to manage your circle or not as well as which one you use, having a lending circle can help you improve your edit score.

Just keep in mind that this is also another option that takes a little while to fund and get your money.

  1. Consider other ways of making money.

You can make an extra money by selling something that you don’t require anymore such as small shirts, old computers, and others, or do some side-hustle such as driving for ridesharing companies and turning your creative hobbies (writing, painting, designing) into an online shop or services.

In these days and age where the pandemic exists, working from home for such services is very much preferred as to how it easy it is. Of course, the quality will depend on your skill, but most of the time you’d find client that can get you that money quickly instead of getting an urgent personal loan.

As we can see above, there are a lot of other options instead of getting an urgent personal loan. Most of the time, getting one yourself is not worth it at all because they can trap you in a debt cycle with their sky-high interest and APR. So, if you are (or was) considering getting an urgent personal loan like a payday loan, be sure to try these options above first.

Not only are they much cheaper, but some like having a side-hustle can help your financial situation for the long term because your sources of income will not only be just the one main job you’re having.

That’s all from us. Thank you for reading this article about 5 alternatives to getting an urgent personal loan. We hope you find this article helpful, and we hope to see you again some other time.

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