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Alternatives to Getting Payday Loans in Utah

  • 9 MIN READ|
  • 0 Comment |
  • 959 |
  • by Joseph Priebe|
  • December 28, 2020 |
  • Loans

What are alternatives to payday loans in Utah?

Every year, Americans say that lack of money and piling debt are a considerable concern.

When a person needs cash immediately, wants to avoid cutting back on their expenses, and can't ask their friends or family, taking out a payday loan seems like the best option.

Granted, payday loans in Utah can secure instant cash with the principal based on a portion of your paycheck. However, there are glaring disadvantages to applying for a payday loan.

Payday Loan Disadvantages:

Payday loans are expensive. Annual interest rates can soar above 500%. Some payday loan lenders have unscrupulous tactics such as hidden fees and rollover charges. Why would you consider this type of loan if 22 states have laws that limit payday loans or ban them entirely? As you can see, taking out a payday loan isn't always a smart option. With that said, here are several payday loan alternatives in Utah to receive the money you need without the large expense.

1. Check Local Nonprofits and Charities

Local nonprofit organizations and charities have a special devotion to the communities they serve. Many of them will openly lend money, food, and resources to borrowers, especially during an emergency.

While lending from a local nonprofit organization may seem like a great idea, it's always wise to understand the larger picture in doing so.

Pros:

  • You can receive free help to cover immediate expenses
  • If you need money for gas, groceries, or other urgent expenses, borrowing from a charity is a great option.
  • You don't have to agonize about paying a loan back.
  • Borrowing from a charity doesn't affect your credit.

Speed:

  • There isn't a definite time for which you can receive a loan from a nonprofit organization. The time usually depends on the amount you need and which charities are located in your area. You'll need to call the charity to find out.

Cons:

  • Many nonprofit organizations will require borrowers to show proof of need, such as recent check stubs, bank statements, and bills, to lend.
  • Charities aren't financially sturdy. They are often limited in the amount they can lend.
  • Nonprofit organizations receive a large volume of lending requests every month. This means that there aren't enough resources to distribute evenly.

2. Apply for an Installment Loan

An installment loan doesn't sound familiar to many people, but the average consumer has committed to at least one of them. It's essentially a loan in which the borrower takes out a loan for a set amount of money at one time.

Mortgages, personal loans, and auto loans are common examples of installment loans, where the borrower determines how much they need and how much they need to pay in regular installments.

Installment loans are excellent payday loan alternatives in Utah, but there are some noticeable disadvantages.

Pros:

  • Installment loans are predictable payments. You can often set the amount you can pay and make these adjustments to your budget, so you're never caught off guard.
  • Installment loans provide the peace of mind of knowing that your loan will be fully paid by a specified date.
  • Getting an installment loan in Utah can help you pay off debt faster with a modest interest rate.
  • Installment loans have high amounts. You can receive up to $2,000.

Speed:

  • After completing the pre-approval process, you can receive an installation loan within a few days, if not immediately.

Cons:

  • Installation loans aren't like other forms of revolving credit (line of credit, credit cards, etc.); you can't add to the loan amount. You'll have to know how much you plan to borrow before taking out the loan.
  • The interest rate and other terms of your loan are largely dependent on your credit. If you've struggled with any credit issues in the past, then there's a strong chance that you'll have to pay a high-interest rate.
  • You may be forced to pay other fees, which can increase your total monthly payments. This depends on the lender.

3. Negotiate a Payment Plan

When all else fails, it makes the most sense to strike up a deal with your creditor and arrange a payment plan. Doing this can create an opportunity for you to pay back your debt at a price and time convenient for you.

Also, there's a chance you may be able to consolidate your debt, repair your credit, and move forward with your life. Here is everything you can expect while negotiating a payment plan.

Pros:

  • Many creditors are understanding. To them, it's nothing personal. They'll often work with you under equitable terms to ensure that an arrangement can be worked out.
  • Talking to your creditor about a payment plan will give them confidence in striking out a deal, especially since you aren't ignoring their phone calls.
  • There is a chance you can consolidate your existing debt.

Speed:

  • Your payment plan can be set up instantly right after your phone call with the creditor.

Cons:

  • Depending on the creditor, the terms of the payment plan can be one-sided in favor of them.
  • If you aren't faithful to the payment plan's terms, the creditor may lose patience and send your case to a collections agency.
  • Negotiating a payment plan may damage your credit if it's not fulfilled according to its original terms.

4. Line of Credit

A line of credit in Utah is one of the most popular emergency funds used in the United States. A bank or financial institution will issue a credit line to a customer that they can draw from in a difficult situation.

While using a line of credit as an alternative to a payday loan is acceptable, here is everything you should know about this decision.

Pros:

  • You can borrow only the money you need during an emergency.
  • There are flexible repayment options available.
  • Taking out a line of credit is ideal for sudden cash shortfalls.
  • You can take out 100% of your credit limit without any penalties or restrictions.
  • There is always a lower average APR than using a credit card.
  • Interest is only charged on the borrowed amount.

Speed:

  • The approval time for a line of credit application can vary. It can take anywhere from two to six weeks to receive a response concerning your application.

Cons:

  • There is a high temptation to overuse this fund due to the ease of access.
  • Having a consistent high balance can negatively affect your credit score.
  • This isn't an ideal solution for regular cash shortfalls.
  • Interest rates can fluctuate depending on a variety of different factors.
  • There are monthly or annual maintenance fees to think about.
  • Taking out a line of credit isn't ideal for debt consolidation since there is a higher interest involved compared to taking out a fixed-rate loan.

5. Try Other Ways to Make Money

Finding opportunities to make money in Utah during desperate situations could be your best option when it comes down to it. Nowadays, side hustles are extremely common, making it all the more convenient for people to store up reserve funds for emergencies.

Here are the pros and cons of trying other ways to make money, as well as how long it will usually take to make any progress.

Pros:

  • You can start making money immediately.
  • There are numerous opportunities to make supplemental income, such as selling your clothes, signing up for a ridesharing company, and turning your hobby into a business.
  • Making extra money is completely simple - you can do it from the comfort of your own home without many available resources.

Speed:

  • The amount of time it takes to build an emergency reserve depends on your side hustle. Selling online items can take several weeks or months to make a profit, while you can earn every week by becoming an Uber driver.

Cons:

  • The amount of money you can earn from a side hustle may not be enough to help you navigate an urgent financial crisis.
  • You may not have the time available to take advantage of opportunities to make extra cash.
  • You can quickly overwhelm yourself if you take on too many responsibilities.

6. Peer-to-Peer Lending

If you're looking to secure emergency cash with a low or no interest rate, then peer-to-peer lending is something you should consider. This option involves setting up an agreement with a group or person you trust. If you need money, you can arrange for your peer to contribute to a fund, whether you need a car repair or help with your medical bills. Peer-to-peer lending has its perks, but it helps if you know the drawbacks as well.

Pros:

  • It's much easier borrowing from people you know and trust rather than relying on a bank.
  • There usually isn't a pre-approval process. You can borrow within what's reasonable without being turned down.
  • Your peer may also be willing to go beyond what you need if you have a deep connection with them.

Speed:

  • The amount of time it takes to receive funds can vary. Typically, you may have to wait several days and even weeks for your peer to contribute to meet your goal.

Cons:

  • The amount of money you can borrow is limited since your peer isn't a bank with near-unlimited reserves of cash.
  • You could end up waiting too long to receive money. It all depends on how quickly your peer can raise money on your behalf.

7. Apply for a Bad Credit Loan

A bad credit loan can seem like a godsend to anyone that needs immediate cash while having a poor credit score. In reality, a bad credit loan is synonymous with a personal loan.

Applicants will borrow what they need and then make monthly payments until the loan is fully paid off. Here is everything you need to know about this loan.

Pros:

  • You can receive immediate access to the cash you need.
  • If you make timely payments, your credit score will improve.
  • You'll have more than enough time to pay off your loan, especially if you didn't borrow much money.

Speed:

  • You can receive your money within minutes of your application being approved.

Cons:

  • Your interest rates will predictably be higher than normal.
  • There are numerous fees you have to worry about, such as origination and late payment fees.
  • The lender can automatically withdrawal the owed amount from your bank account.
  • You need some collateral to apply.

8. A Credit Card Advance

A credit card advance is simply the act of withdrawing cash from your credit card amount. By taking out an advance, you're borrowing from your credit card to receive immediate cash.

If you're curious, here are the pros and cons of making this decision.

Pros:

  • The money you need can be accessed immediately without having it in your credit card account.
  • It's ideal if you have a steady income and are experiencing a sudden financial hardship.

Speed:

  • You can receive an advance within a few minutes of applying.

Cons:

  • You will be paying exorbitant interest rates and fees.
  • The interest will start to accumulate the money you receive your money.
  • Your credit utilization ratio will increase, having a negative impact on your credit score.

9. Form a Lending Circle

Similar to peer-to-peer lending, forming a lending circle allows you to borrow from trusted friends and relatives. Here is everything you need to know about getting started.

Pros:

  • You can borrow more money than you would with just one peer.
  • You don't have to endure a long pre-approval process.
  • There are no credit checks, and it's more comfortable borrowing from people you know.

Speed:

  • You may be forced to wait a while to receive the money you need as your peers contribute.

Cons:

  • You may wait too long for your peers to contribute to your cause.
  • You also may have to wait your turn if another peer is in dire need of cash.

10. Get Help With Medical Bills

Injuries are a part of life, making it more common for people and financial institutions to cut you slack in paying off your medical bills. If you need help with your medical bills and don't want to rely on online payday loans in Utah, here's what you should know.

Pros:

  • There are so many ways you can receive assistance, whether you ask your doctor for a payment arrangement or speak to a medical bill advocate about negotiating your bill.
  • You can receive a medical credit card to help with your expenses.

Speed:

  • The amount of time it takes to receive help with your medical bills can vary tremendously. You could wait a few days to receive a medical credit card or a few minutes to arrange a payment plan.

Cons:

  • Applying for a medical credit card requires a credit check.
  • You may have to pay fees and a high-interest rate regardless of the option you choose.

11. Borrow from a Friend or Family Member

If you don't know where to turn, you can always borrow money from a friend or family member. However, don't be too hasty in borrowing from friends and relatives before considering the consequences.

Pros:

  • It's always comfortable borrowing from people you trust.
  • Your friends or relatives can give you instant access to the funds you need.
  • Depending on who you ask, you won't be hassled into paying the money back right away.

Speed:

  • The time it takes to borrow from a friend or family member can vary.

Cons:

  • It's a great chance that the person you ask may not have the money you need.
  • You may have to ask multiple friends and relatives for money if you're facing a financial crisis.
  • Some family members and friends won't lend you money if you continually ask them.

12. An Advance from Your Employer

Getting a cash advance from your employer can seem downright intimidating. If you're considering this option, here is the information you need to make an informed decision.

Pros:

  • If you're a valuable employee, you may not have to endure a preapproval process.
  • There usually aren't any credit checks.

Speed:

  • The time it takes to receive an advance from your employer can vary, ranging from a few days to several weeks, depending on your need.

Cons:

  • This option may not be available for people who are new to a job.
  • If you don't have the best relationship with your employer, you could be denied.

13. Use a Paycheck Advance App

There are available paycheck advance apps that promise to deliver instant cash in advance from your employment income. Are these apps legitimate? Here's everything you need to know.

Pros:

  • These apps are easy to use, and the money you need can be made available within minutes.
  • There are often fewer requirements compared to other loan types.
  • These apps won't check your credit.

Speed:

  • Depending on your situation, you can receive your money in just a few minutes.

Cons:

  • Receiving this type of loan can be expensive.
  • You can easily fall into a debt cycle by taking out too many loans.
  • You will never build credit.

Avoid Payday Loans in Utah Today!

Ultimately, there are many routes you can take to receive immediate cash without facing the consequences of taking out payday loans in Utah. To learn more about how we can help, read about our personal loans in Utah today and get approved in minutes!

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