Payday loans can be a great way to create bridge capital to cover an unexpected expense in the days or weeks that precede payday which is the purpose of these types of loans. However, there are better alternatives out there that can help you take advantage of the capital you already have and generate additional fast cash to help out in a pinch.

Avoid a payday loan if you can.

Payday loans can be of great help, but they often charge incredibly high interest for the benefit of a quick cash infusion. If you aren’t careful, a single payday loan can create knock-on effects that develop into a dependency on short-term borrowing all while eroding your future financial stability out from under you. The high interest charged alongside a small lump sum can bleed over into the next week or month if you aren’t careful, creating long term debt out of a short term loan.

Credit Card Cash Advance

If you are really stuck for cash — your tire and spare tire both blew out ten days from payday and your car is your only possible means of transportation — then taking a cash advance from your credit card might be the best option for accessing something of a “bridge loan.” The interest rate on your card’s cash advance is likely similar to that of a typical purchase so you know exactly what you are signing up for, unlike the often opaque terms that come along with an outside lender at a payday loan boutique. Utilizing your available credit also requires no additional paperwork or wait time. You already have access to this line of credit, however, make sure you use it sparingly.

Take advantage of sales.

Instead of relying on loans to pay for emergency purchases, it’s a much better idea to try to get ahead of your finances so that you have the free cash ready for use if you need it. This might sound easier said than done, but there are a number of simple and effective ways to save on the things you already buy, freeing up extra cash for savings.

Buying clothes offseason is a simple way to save on your wardrobe purchases. A fall sale will often present a mixture of spring and winter seasonal clothing, and shopping at an online store may net you even greater discounts if you are a student or work in education, healthcare, or other critical industries.

Consider a debt relief or a consolidation loan.

For those already suffering from high revolving debt, a consolidation loan might be the best opportunity to reduce your borrowing burden. A debt consolidation loan is one extended by a creditor, usually at a favorable interest rate, specifically for use in paying off older, higher-interest loans. This concludes relationships with multiple creditors and consolidates various monthly payments into one, more manageable one. Another option is to consider a debt relief program. Consulting a bankruptcy lawyer in Louisville KY can help navigate the specifics of this process. If you have been dealing with foreclosure or other financial problems for a long time then debt relief may be the best solution, and many sources for your legal needs will offer a free consultation.

It’s in your best interest to tackle your financial problems today instead of putting them off for another time. The longer you wait the more your debt grows. Bankruptcy relief or debt consolidation might be the perfect solution for building a new start to your financial future without the weight of your past financial blunders holding you down. Take control of your finances and start fresh.