Moolr.co.uk | Short term loans

Payday Loans Alternatives

Payday loans have had a rough ride in the media in past years, due to the interest rates that come with them. They still exist though. As with any loan, we at Moolr always recommend you look at all options before borrowing. So here are some payday loans alternatives.

Payday Loans Alternatives – Sell Possessions

If you’re searching for a quick way to generate some money, selling some of your unused items around the house could be precisely what you need. You can do this without going into debt.

If you need money quickly, selling on eBay (unless you’re selling locally) isn’t the best option. This is because you’ll have to wait for the item to sell via auction. Then wait for someone to transfer the funds to you.

You might use Gumtree or your local Facebook page for a faster solution. This won’t always result in a sale, but you should be able to negotiate a better deal on your purchase. You could try pawning stuff, but don’t expect to obtain anything close to the original price.

Interest Free Borrowing

Instead of relying on credit to help you out of a bind, ask your friends and family for a loan. If you’re suffering ongoing financial difficulties, they might be able to lend you some money. It is hard to approach people to ask this, but it is far better than market loans. They can assist you out in the short term, but it won’t be a long-term solution.

You must figure out how you will repay them and whether or not you will be able to afford to do so. If you don’t pay them back when you say you will, it may affect how they pay their expenses. If you don’t pay them back at all, it may badly harm your friendship.

Paid In Advance?

If you are working, you could inquire with your human resources department about receiving a wage advance. You can either pay it back in one single sum with your next pay check, or you can ask if you can pay it back over several months.

You won’t have to pay interest in either case, but they may charge an administration fee. They may do this to cover the bank transfer charges.
Some employers, which are controlled by distinct companies, will give you a pay advance. You will have to pay a fee for this, which can be quite costly at times. In addition, they are uncontrolled.

Budgeting Loans

If you receive certain benefits, you may be eligible for a budgeting loan to pay expenses such as furniture, clothing, relocation charges, or debts from a hire purchase agreement.

You could also be able to acquire a budget advance to cover unexpected expenses, such as an emergency.

Payday Loans Alternatives – Lower Outgoings

Examine your bank account to see what payments are scheduled to be made in the near future.

You probably won’t want to cancel your mortgage, rent, council tax, utility bills, or loan repayments, but could you cancel a gym membership, magazine subscription, or something else that isn’t a priority in order to keep your financial head above water?

Payday Loans Alternatives – Overdrafts

If your bank account allows you to use an overdraft, now is the time to consider using it or requesting an extension from the bank. This will cost you money, and the amount will vary depending on who you bank with, but you might be charged interest of up to 20%.

You will be charged significantly the next month if you use your overdraft and fall into your illegal overdraft. The money will be taken from your account, and you will not be able to stop it. It will be costly, and you may find yourself in repeated financial difficulties as a result. You could be ensnared just as easily as if you took out a payday loan.

Credit Cards

If you already have a credit card but have maxed it out, you might be able to request a credit limit increase. You will be charged interest once again, but it will not be as expensive as it would be if you took out a payday loan.

If you can’t pay the full amount by the end of the month, you’ll have to pay interest and the debt will take a long time to pay off.

Credit Unions

Consider asking for a loan at a cheaper interest rate through your local credit union. Credit unions are non-profit organisations that allow members to save and borrow money, with the Financial Services Compensation Scheme covering your deposit up to £85,000 in the event of a default.

 

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