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The end of the month is approaching. You have to pay rent, but your paycheck won’t hit for a few days. You don’t want to be late, but you don’t have enough money to cover the bills. This is often the reality that the 63% of Americans who live paycheck to paycheck face. Whether you need to cover business expenses or personal ones, time-sensitive bills can cause stress if you are waiting on a paycheck. Fortunately, there are several innovative ways to pay your bills before payday. In this article, we explore seven strategies you can use to make sure your bills get paid on time.
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1. Use Money Transfer Apps When You’re Waiting for Payday
Mobile money transfer apps like Venmo, Cash App, and Zelle make it easy to send and receive money instantly with friends and family. They work by linking to your bank account and allow you to transfer money quickly with a few taps. If you have friends or family who could lend you the money, using a money transfer app can be a quick and convenient way to get the money you need before payday. It is also the best first step, considering that those close to you probably won’t charge you interest or fees.
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2. Utilize Online Lending Platforms
Online lending platforms like Earnin, Dave, and Brigit offer cash advances that are deposited into your bank account within 24 hours. You can use these cash advances to get you through until your next paycheck.
You can also apply for a cash advance loan using US Cash Advance, a service that specializes in providing short-term cash advances. These loans are designed to be repaid on your next payday. Therefore, they can help you bridge the gap between paychecks. These platforms sometimes charge high fees for their convenience, however. As such, it is important to read the fine print. Make sure you understand all associated costs before borrowing.
3. Use a Crowdfunding Platform Before Payday
Crowdfunding is a way to borrow money from multiple lenders at once, often in exchange for a reward. This type of fundraising has become increasingly popular. This is likely due to the ease of use and convenience provided by crowdfunding platforms such as GoFundMe, Kickstarter, and Indiegogo.
Crowdfunding campaigns are typically created when an individual or organization needs to raise money for a specific purpose. Crowdfunding could be an option worth considering if you need some extra cash before payday. If you decide to go this route, here are a few best practices:
- Set a reasonable goal: Don’t expect to raise a lot of money in a short amount of time. Moreover, only ask for the amount of money you need.
- Keep your story short and sweet: Avoid providing too much detail in your pitch. Instead, focus on conveying the need.
- Offer incentives to incentivize people to donate: This could include a small reward for each donation or a large reward for those who contribute more.
The bottom line is that if you attempt to raise money for your bills, you should have a compelling reason and give your donors a reason to part with their money.
4. Use a Credit Card
A credit card is a payment card that allows you to borrow funds from your creditor—usually a bank or other financial institution—and use it to pay for goods and services. When you make a purchase with your credit card, the money is charged to your account. Then you are responsible for repaying the debt, usually with interest after a certain period of time.
Using a credit card is one of the most convenient ways to pay your bills before payday. Most major credit cards offer cash advances. These allow you to withdraw money from an ATM or bank branch up to a certain amount. Then you must pay it back when your next statement arrives.
Credit cards can also create a debt trap if you fail to make payments on time or exceed your credit limit. Look for cards with low interest rates and fees. Also, be sure to always make at least the minimum payment each month to avoid paying lots of interest or falling into more debt than you were in in the first place.
5. Negotiate With Your Creditors
If you’re having difficulty paying your bills, one of the best ways to get ahead is by negotiating with your creditors. It’s important to remember that creditors are often willing to work with you to resolve your debt. You can negotiate payment plans, lower interest rates, and even waive late fees. However, you will need to explain your financial situation clearly and in good faith. In some cases, creditors may be more lenient when it comes to repayment timelines as long as you are making an effort to pay back what you owe.
6. Look for Extra Money
In some cases, you might be able to find some extra money to help you pay your bills before payday. This could involve taking on a side job, selling items you no longer need, or asking family and friends for assistance. You might also have extra money in a savings account, stock portfolio, cryptocurrency, or another investment that you could access in a pinch.
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7. Use Payday Loans
Payday loans are short-term, high-interest loans that can be used to get cash quickly before payday. They work by providing a cash advance against your next paycheck. Then you repay the advance with interest on your next payday. Payday loans can be a convenient way to get access to the money you need before payday. However, they should be used as a last resort. Payday loans almost always have high interest rates and fees. They can quickly lead to more debt if not managed carefully.
No matter which option you choose, make sure that you are taking steps to ensure that you can pay your bills before payday. By planning ahead and budgeting carefully, you can make sure that you have the money you need when it’s time to pay your bills. If possible, try to create an emergency fund to cover unexpected expenses so that you don’t find yourself unexpectedly in a difficult financial situation.
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