There are few financial service products that divide opinion quite as much as payday loans. For some they are a simple and effective way to help you budget and meet unexpected costs as they arise. For others, however, they are little more than loan sharking in disgiuse and something to be avoided at all costs.
If you are in the latter camp and you need access to funds for a short time, are there any other options out there?
Here are a few of our favourite alternatives:
Ask for an advance on your wages
If yiy are on reasonable teems with your employer thsan it may be possible to ask him or her for a wage advance. Obviously it depnds on how yiou get on wirth your employer and may be more appropriate in a smaller busines. In essence it amounts to an informal “payday loan” with the benefit that you don’t need to pay it back
Use a pawnbroking service
Pawns shopd have been ariund for mamy years and have always had something of a shady image. That has all changed now as modern pawns shops have moved from the back streets to the High stret. You can pledge goods such as jewellery and watches in exchange for ready cash. You need to remenmber to redeem the cash advance within the specified time, failing which you could end up forfeiting the item you pledged.
Speak to family or friends
Most people caution against borrowing from close relatives or friends on the basis that if things go wrong it can end up souring that close relationship. However, if there are no alternatives, this remains a viable option and in most cases it has the benefit that you would not have to pay interest on any money borrowed.
Use a conventional credit card
If you do not want to pawn your possessins or potentially jeopardise a close relationship, then another opion is to use you credit card to help tide you over, The interest rates payable on credit cards can be high, but nowhere near the levels payable on a payday loan. If possible, try to pay the amount borrowed off in full at the end of the month because if yiou simply pay the minimum each month the level of interest payable can really moun t up/