Many people dread the words payday loan. However, if you find yourself coming up short on cash for the month, it could be a necessary option to make sure that you and your family get by. However, a traditional payday loan doesn’t have to be the only option. There are many different alternatives to payday lenders, include a new solution from Wonga.
The Houston Chronical has reported that more and more people are able to qualify for small personal loans by using online sites like Wonga. Wonga is different in that everything is done online, and decisions are quickly made.
All you need to do is select how much you want to borrow (up to $400) and how long you want to borrow it for – up to 30 days. Wonga is very upfront in exactly how much it will cost to borrow the money.
For example, if you want to borrow the maximum of $400 for 30 days, your total amount to repay the loan would be $484 ($400 loan plus $84 in fees and interest). There are never any hidden fees when using this service. The only time you could pay more is if you don’t have enough money in your bank account when your loan comes due. They you could face additional fees and interest.
But Wonga isn’t the only alternative to getting a payday loan. Depending on how much you need to borrow, and how quickly you need it, you could benefit from using other services like peer to peer lending, or even going to a pawn broker.
Peer to peer lending works well if you need a larger amount, and don’t need it quickly. You simply write a listing describing what you will use the money for, and people bid on funding your loan. If it gets funded, you get the loan direct deposited.
If you need something a little quicker, but maybe don’t have the credit, you could get a pawn loan by pawning something you own. This type of loan provides you money against some type of physical collateral. If you don’t pay the loan back, the pawn shop simply sells your item.