Payday loans are easy to get — all you need is a paycheck and a checking account. But these short-term loans are costly, and they can wreak havoc on your finances.

It’s not unusual for people to rely on payday lenders when they need money quickly. But what many borrowers don’t realize is that there are alternatives to payday loans that offer better terms and Payday Loans Houston lower fees.

They’re easy to get

When you’re in a financial bind, it may seem tempting to get a payday loan. After all, they are easy to obtain and don’t require a credit check. However, they are also expensive. According to the Consumer Financial Protection Bureau, 12 million cash-strapped Americans use these loans each year. In addition, they pay $7 billion in interest. Payday lenders offer high interest rates because they know that many people have few options for borrowing money.

Alternatives to payday loans include cash advances from a bank or credit union, personal installment loans and credit cards with reasonable terms and rates. You can also apply for a PAL, or payday alternative loan, from your federally-insured credit union. These loans are intended to bridge the gap between your paychecks and are repaid on your next payday. They are designed to help you avoid reliance on payday lending, but may be difficult to qualify for. You can also seek credit counseling through a non-profit agency.

They’re fast

A payday loan can give you cash almost instantly. Unlike other loans, you don’t need a good credit score to qualify for one, and you can get money in your bank account as soon as the lender approves your application. These factors make payday loans an ideal solution for urgent expenses.

However, the high interest rates of payday loans can trap borrowers in a cycle of debt. The Consumer Financial Protection Bureau (CFPB) reports that 80% of payday loans are rolled over and end up costing borrowers more than they borrowed. If you’re struggling with repayments, consider credit counseling from a non-profit organization.

Another option for quick cash is a credit card designed for people with poor credit. Some credit cards have low credit requirements, and offer interest rates much lower than that of a payday loan. You can also try peer-to-peer lending, which is usually cheaper than payday loans. But you’ll want to research the lenders carefully before applying.

They’re convenient

Payday lenders offer cash to borrowers who walk into their stores with a recent pay stub and ID such as a driver’s license. The loan amounts are small, but the interest rates and fees can quickly add up.

The high fees can trap borrowers in a cycle of debt, with the average payday loan costing 398% APR. However, borrowers sometimes don’t have time to jump through the hoops required to apply for other types of loans.

If you need quick cash, consider seeking credit counseling to help you manage your money. Many non-profit agencies focus on debt management and can provide credit advice at no or low cost to borrowers. In addition, banks and credit unions often have personal loans with reasonable terms and rates. You could also ask a family member or friend to cosign a loan for you, as this can give you better borrowing terms and build your credit history at the same time.

They’re affordable

People in financial need often use payday loans to cover a shortfall, but the costs can be prohibitive. They can also trap borrowers in a cycle of debt that is difficult to break. Instead, try to find a more affordable option like a personal loan for bad credit, which is designed for borrowers with lower credit scores. These loans typically have a lower interest rate than payday loans and they are reported to the credit bureaus, which can help you improve your credit score over time.

Another option is to contact your creditors directly to negotiate a debt repayment plan. If you are struggling to repay your current debt, it may be possible to reduce your monthly payments by extending the length of the loan or negotiating lower rates. This will give you some breathing room and allow you to get back on track without resorting to a Payday Loans Houston loan. However, you should always seek professional financial advice before taking on any debt.