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Many people use payday loans to cover emergency expenses such as an unavoidable car repair or unexpected utility bill. But they often end up with a large debt load and recurring charges because of the loan’s high fees and interest rates.

The good news is that you can avoid these pitfalls by following these simple tips. Also, ca consider credit counseling and other long-term financial solutions like budgeting.

They’re easy to get

Payday loans are short-term, high-interest loans that are based on a borrower’s income. Often requiring a paycheck stub for proof of income, payday loans can cause financial hardships if not paid back on time. However, there are alternatives to payday loans that can help you avoid the costs of these predatory loans.

Many lenders require that borrowers have an active checking account and auto-deposit the loan proceeds to it. Lenders also typically require a postdated check from the borrower for the full amount of the loan plus fees. When the due date comes, if the check is not deposited, the lender can cash it and collect the debt.

If you find yourself struggling to repay a payday loan, consider getting credit counseling. There are non-profit agencies that provide free credit advice, and they can help you develop a repayment plan that will eliminate your need for payday loans. They can also help you find other sources of funds, such as personal loans from a bank or from family and friends.

They’re fast

Payday loans are quick and easy to get, but they can be expensive. A payday loan can carry an annual interest rate of 300%, which is a lot higher than a personal loan from a bank. Consumers can also be charged extra fees for late payment or rolling over the loan, which can trap them in a cycle of debt. There are alternatives to payday loans, such as credit cards and cash advances on a credit card.

Many people use payday lenders because they are desperate for money. They may not have other options, or they may not be comfortable asking friends or family for help. In addition, many employers offer paycheck advance policies that allow borrowers to have part of their wages deducted from future paychecks. Some personal lenders specialize in working with borrowers with bad credit and can provide unsecured loans at lower rates than payday lenders. They are also more flexible about repayment terms.

They’re affordable

If you find yourself in need of cash, consider alternatives to payday loans. You can also seek out credit counseling from non-profit agencies. Credit counselors can help you create a budget and manage debt. They can even help you qualify for personal loans that have lower interest rates than payday loans.

Payday lenders charge high fees and triple-digit APRs, which can add up quickly. But there are other ways to get quick cash, such as a short-term loan from a bank or a credit union or a small loan from a local lender.

Alternatively, you can borrow money from family or friends to cover financial emergencies. Just be sure to write a formal agreement and stick to it to avoid damaging your relationship. You can also consider applying for a personal loan or credit card designed for people with bad credit, which typically come with higher interest rates but are still much less expensive than payday loans.

They’re easy to repay

The borrower writes a personal check for the loan amount plus fees or gives the lender authorization to electronically debit the money from their bank, credit union or prepaid card account. The payday loan is due in a short period of time, usually two to four weeks. If borrowers cannot repay their loans on the agreed date, they may roll over the debt for another payday. This practice is illegal in some states and can result in a cycle of debt.

The Consumer Financial Protection Bureau (CFPB) reports that 12 million Americans take out payday loans every year. These short-term loans can be very expensive. The average two-week payday loan costs about $15 per $100 borrowed, or 400% APR. Payday lenders prey on cash-strapped people in desperate need of money.

Try to avoid a payday loan by working with your creditor or credit card company. A creditor might agree to a payment plan or lower your interest rate. You could also talk to a community bank about its payday alternative loans, called PAL loans.