Payday loans can be a reasonable way of borrowing money for short periods, but they can in some circumstances be problematic – and there are arguably much better ways of borrowing money.
This articles looks at 5 alternatives to getting a loan from a payday loans company.
1) Borrow from a friend or relative
Friends and family often won’t charge interest – and as long as you pay the money back the chances of problems is low.
If the loan indeed is interest free – this makes it the most cost effective way of borrowing money for a short period.
2) Bank overdraft
If your bank offers overdraft facilities this could be a low interest method of borrowing money that you may be wise to take advantage of.
You certainly should go over your overdraft if you are already maxed out – but you could consider giving your bank a call.
Your bank may have suggestions that could help, such as a temporary or permanent overdraft extension, or can advise on other alternatives available to you.
3) Interest free credit card
Credit cards are absolutely not the best form of borrowing money – but certain types of credit cards off interest free purchases and similar.
Even if you pay interest, you may find that over the period you intend to borrow money it may be more cost effective to use a credit card.
However as always you should attempt to pay the credit card off straight away. Paying minimum payments only will likely cost more in the long run.
4) Wage advance from employer
Some employers may be able to provide you with advance on your wages.
This will be taken directly from your next pay check and there will be no interest.
5) Sell your stuff or earn extra money
Depending on how quickly you need the money this could be a good way of getting money.
If you have a bit more time you could try selling on eBay or Gumtree.
If you need the money very quickly you could try and sell something to friends or family.
You could also try and sell services, such as cleaning cars or doing work for somebody.
What is the best alternative to a payday loan?
This depends on your circumstances and what options you have available – but the best option in my opinion is to ask friends or family.
It isn’t always easy, but it is the best option financially speaking if it is possible.