When money is tight, a payday loan can feel like the only choice. It’s normal to feel stressed and rushed. But in Illinois, you often have better and safer options than a high-cost payday loan. 

Credit Union Payday Alternative Loans (PALs)

If you’re a credit union member, they may offer small loans called Payday Alternative Loans (PALs). These are designed to be safer and cheaper than payday loans.

PALs:

• Are small loans (often between about $200 and $1,000)
• Have lower interest rates and fees than payday loans
• Give you more time to repay than a typical payday loan

💡 Keep in mind: You don’t need a lot of cash to join a credit union. Many will let you open an account with $5 to $25. Ask your local credit union about the membership rules. Even if you don’t qualify there, they may be able to help you find another credit union where you do qualify. 

Small personal loans or hardship programs

Some banks and community development lenders offer small-dollar personal loans with lower rates and clearer terms than payday loans. 

The federal government also supports Small Dollar Loan Program lenders that aim to replace high-cost fringe loans.

Ask your bank or credit union:

“Do you offer any small emergency loans or hardship loans instead of payday loans?”

Address your debts directly

Before turning to a payday loan, it can help to look at the debts you’re already struggling to pay. We can walk you through your options for credit cards, medical bills, utilities, and more, so you can decide what’s best for your situation.

You may be able to:

• Get financial assistance for certain bills,
• Work out a payment plan or deal with your creditor,
• Get free or low-cost help from legal aid or credit counselors, and
• Consider bankruptcy as a fresh start, if it’s right for you.

You are not alone in this. Debt Help Illinois will give you clear information, plain-language guidance, and step-by-step options so you can make the best decision for your situation and move toward your goals.