While growing numbers of Utahns are turning to payday lenders for help, debt counselors — and even some payday lenders themselves — say such loans should be used only as a last resort.

"Almost always, there are other alternatives," said Linda Hilton, coordinator of the Coalition of Religious Communities, who has worked with many people who faced extra financial troubles from such loans.

"People can work with companies that they owe money to. For example, doctors are usually willing to work out payment schedules. If they have trouble paying rent, there are agencies that can help them," she said.

Mike Peterson, vice president of the American Credit Foundation counseling service, said, "We advise them (payday borrowers) to find any way out they can: Have a garage sale, take a temporary job to help in that financial crisis. If they have any large item, like a boat, that they can sell to make up that differential, they should."

He added, "Heaven forbid that a credit counselor urge use of credit cards, but credit cards have lower interest rates than payday loans. In an emergency, is there an unused balance there they could use instead?"

Some other options he lists are, "Do you have family who could help? Do you have a 401(k) (retirement plan) that you could get to in an emergency? Often they have a penalty for early withdrawal, but it may be worth it."

Peterson also urges those in financial crisis to look at their spending.

"Most clients we talk to day-to-day have 10 to 15 percent of their income going out on wasted purchases that they don't really need. When they look hard at it, they could do without it and not have their lifestyles affected," he said.

"If they look at those things ahead of time, a few months of doing that (avoiding unnecessary purchases) will put away enough money to handle emergencies."

Howard Headlee, president of the Utah Bankers Association, says people who have a long history with a bank or other financial institution should also consider discussing financial problems with them. If they have a good history, he says banks may be able to work out a line of credit or other help they could not offer a stranger on the street.

Even payday lenders themselves offer booklets in stores urging customers to consider loans as only a temporary, last resort.

"A cash advance is not a long-term solution for ongoing budget management," a pamphlet from the Check 'n Go chain advises.

It advises people to consider alternatives including emergency assistance programs from churches; using credit cards with lower interest for cash advances; having members of the military use various Military Relief Society programs; working out payment plans with creditors; and obtaining credit counseling.

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E-mail: lee@desnews.com