Alternatives to Payday Loans

By: Stacey Tisdale - sponsored partner

Jun 20, 2019

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1 minute read

*Stacey Tisdale is a sponsored partner compensated by OneMain.

Know before you borrow. Especially when it comes to payday lenders.

Financial expert and sponsored partner Stacey Tisdale goes over some other options to consider first.

See video transcript...

As a financial journalist, I've had the opportunity to report on the payday lending industry for many outlets. That's because it is *big business*.

In fact, Pew Research found that 12 million American adults spend more than $7 billion a year on payday loans.

And listen to this...

On average, a borrower takes out eight loans of $375 each per year; takes five months to pay it back; and pays $520 in interest and fees.

And, interestingly, it's not just low-income households finding the need for short-term financing.

Researchs from the Unversity of Georgia found that even some owners in the top 20% income bracket in the United States use payday loans.

Regardless of income level, the one thing that I've observed in every borrower I've met is that they believe these loans were their only choice. That's simply NOT TRUE!

The financial stress can make us forget that we have other options, like reducing expenses, negotiating lower interest rates from creditors, or that even a friend, family member or in some cases an employer might offer short-term loans.

There are also lower-cost borrowing alternatives like those offered by OneMain.

And there's a new company called "Honeybee," which offers 3-month loans of a week's pay for minimal cost.

Life happens. Unexpected bills can hit hard. The key is to find alternatives that allow you to create long-term financial security without getting caught in a destructive cycle of debt that is not consistent with who you are and what you want to achieve.

This video was posted June 20, 2019. For more sponsored videos, visit our YouTube channel.

This article is for general education and informational purposes, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any purpose and is not intended to be and does not constitute financial, legal, tax, or any other advice. Parties (other than sponsored partners of OneMain Financial (OMF)) referenced in the article are not sponsors of, do not endorse, and are not otherwise affiliated with OMF.

Frequently asked questions

Here are a few things that affect your eligibility

  • Financial history Credit history
  • Income and expenses
  • Loan purpose
  • Whether you have filed for bankruptcy
  • State of residence

Before you close your loan, OneMain will need the following documents from you:

  • A copy of a valid, government-issued ID (driver’s license or passport)
  • Your Social Security card
  • Proof of residence (driver’s license with current address, utility bill, or signed lease)
  • Proof of income (pay stubs or tax returns)

We may ask for more info based on your unique situation. Take the next step and start your loan application today

  • From the start of the application to receiving the funds could be as quick as one day.*
  • Completing the online loan application: Takes just minutes to complete and see your offers*
  • Signing your loan documents: After final loan approval, signing your closing documents takes about 30-45 minutes.
  • Receiving your funds: When using your debit card to receive funds, you can get your money as soon as an hour after signing the loan docs.1 Funds can also be paid out by direct deposit (ACH), which are available approximately 1-2 banking days after loan closing. A check can be issued as soon as the same day as the closing.

*Timing may vary based on: when you submit your application, how many documents are needed for approval, and how long it takes for OneMain to receive, review, and verify those documents, and whether your loan is secured by collateral, among other factors.

Are you still wondering "Is a personal loan right for me?" Don't worry – we're here to help. Just call (800) 961-5577 or find a branch near you.

If you're approved for a loan, you may see secured or unsecured next to your offer. A secured loan requires that you provide collateral, like a vehicle. An unsecured loan doesn't require any collateral from you.

Keep in mind that there are eligibility requirements such as the condition and age of your motor vehicle and proof of insurance. Also, if a borrower defaults on a secured loan, the lender has the right to take the collateral.