Spot Loan Alternatives – Get Cheaper Options

If you are in a spot, then Spot Loans offers a way to see you through with loans from $500 to $3,000 with repayment periods from 6 to 12 months. An easy application process with quick turnaround times can really help you when you are in a spot. Whilst there are some benefits to these loans, be sure to understand the full terms of the loan along with the consequences should you have any issues making your repayments.

Spot Loan is a short-term lender and as such their annual percentage rates are high, do not include all fees if you default and can be much more expensive than tradition banks and non-bank lenders.

What to be aware of when dealing with short-term & payday loan lenders.
These lenders offer quick and convenient service but a premium cost.

• APRs can be as high as 48%.
• Total cost of the loan can go as high as 200% of the borrowing amount.
• Spot Loans offer a product for consumers that have a hard time getting bank loans, but at a cost that is often double, triple or more cost than a standard credit card. They are often compared to loan sharks.
• Posting a surety against these types of loans like a car or piece of jewellery can cause greater pain if you lose the item and try to acquire it again.

The Australian government has moved to ensure fair lending practices in this sector to provide a safe lending environment and limit the overall rate that can be charged by short term lenders.

If you are in need of a small loan up to $3000 there are more suitable options.
One of the easiest ways to avoid the high fees associated with a short-term payday style loan is to avoid them if possible. No matter your financial situation, there are alternatives that can help you get out of your problem with low or no interest loan options. These options can help you get on a better footing without the high cost of these loans.

These alternative funding sources include a number of programs from the government of Australia meant to help low income earners and families cope in difficult times.

• The No Interest Loan Scheme (NILS) is actually provided by local organizations in your community at over 250 locations across Australia. It is meant to help out those in need with loans from $300 to $1,200 with no fees, charges or interest.
• If you are already receiving payments through Centrelink, the Australian government’s online social service payment provider such as a concession card or family benefits than the Stepup Loans may be another possible option. These loans are still third-party loans through national partners such as GoodShepherd Microfinance and are extremely low rate loans with no associated fees for loans of $800 to $3000 for the purchase of a vehicle, household appliances, repairs and even medical expenses. Pay back periods are up to 3 years to make payments manageable.
• Negotiate more forgiving terms with your creditors. They will often want to in order to be assured of payment.
• Approach local credit unions, non-profit charities or welfare assistance funds in your community for a short-term loan.

How to handle issues with loan repayments
Repayment of payday loans can become prohibitive while still meeting your monthly living standards. If this is the case, you should seek help from a local financial counsellor immediately. These free advice officers can often help you come up with alternate financing, lower the debt or restructure payments. Remember the maximum payback on these loans is limited to 200% of the original loan.

If you are in a financial crisis and need immediate help
Lastly, there are many local non-profit organisations that can help families with emergency necessities such as heating, groceries or rent if you are in a financial crisis. Reach out to your local charity organisations and they will be able to direct you to the right provider.