Equifax

Traditional banks used to be the go to place for people looking to borrow money or saving for a rainy day. However, due to a rise in bank fees, banking criteria and some banks collapsing many people no longer count on banks to handle their day to day money needs. Alternative ways to save and borrow money have become increasingly popular as people are distancing themselves from traditional banks.

There are many reasons why some people choose not to use money to borrow or save money. Many banks check credit ratings and if you have a very low credit rating or owe money on another account you cannot open an account or borrow funds. If you have gotten behind on your payments because you lost your job or other circumstances, finding a bank to let you borrow money can be extremely difficult. Another group of consumers are simply fed up with the ever changing bank fees and rules and the sudden collapse of banks and have therefore decided to forego banks all together.

There are alternative ways to save and borrow money that consumers can readily use. Many people are turning to payday loans, title loans and pawn shops to borrow money. Users can borrow set sums of money even with bad or no credit and pay them back on their next payday or if needed an extended time period. Individuals who have a work 401K or retirement plan may be able to borrow money from these types of work plans. Many of these plans give account owners the ability to borrow or even withdraw some of their money if needed. Payment generally comes straight out of your paycheck each pay period which makes it convenient to pay your loan back on time.

401K accounts can also be a good way to save money because some of them offer savings accounts or allow you to have access to your money if you need to. Some people are also turning to IRAs and stocks and bonds when it comes to saving their money. Margin lending where individuals use stocks and mutual funds as collateral is another borrowing option that some consumers are utilizing.

One of the oldest and most utilized borrowing methods is peer to peer meaning you borrow money from another person. This can be through an online service or even a friend or family member. Many people have gone this route and simply draw up a legal contract that covers the lending and payback terms without the hidden surprises that some banks can have. Those who use peer to peer lending find the process to be far more satisfying and far less of a headache than dealing with traditional means of borrowing money.

One of the easiest ways to save money is to simply keep it in your home. You may not want to use your old mattress as a hiding place but many people have installed wall or floor safes in their home to keep their stash. In addition safety security boxes are a good place to save money safely. Some online services or prepaid debit or alternative credit cards also offer stress free ways you can save your money. Bank alternatives are not always readily visible to the eye but they can be just as effective as traditional banks.