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If you are considering taking out a payday loan, you should first look at alternatives to make sure it’s the right choice for you. Make sure you have considered alternate options. It is always best to first discuss any other options you might have to source the cash necessary to help you through your financial difficulty. In this guide, we’ll give you some ideas of where you can find the cash you need to get by. 

Ask for a pay advance

If you find yourself needing money, but your salary day still seems far away, you may consider asking for a pay advance. It’s always worth seeing if your employer is willing to give you an advance on your wages. If you have been a reliable employee, your employer may be happy to provide an advance to help you in a one-off emergency situation. This would be perfect in helping you get through when an unforeseen expense comes along. 

Use a credit card

If you have a credit card, you could think about using it for purchases until you can pay it off at payday. If you cannot get by, a credit card may be enough to avoid getting a loan. However, still be wary of making purchases or withdrawals on a credit card as they can be expensive. Repay as much as you can as soon as you can to keep costs down. Don’t be tempted to make purchases that aren’t absolutely necessary and only spend what you can comfortably afford to repay.

Borrow from family or friends

Borrowing the money you need from family and friends may be the best solution if possible in your situation. Someone who cares about you may want to help you avoid the interest charges that come with a loan. It may be tempting to ask friends to lend you money to avoid interest or fees, but you still need to think mindfully about whether you can afford to repay it. You also need to reflect on what might happen if you are unable to repay the funds. When you borrow from family or a friend, remember that this could damage the relationship if you don’t refund the money. 

If you choose to borrow from family or a friend, be sure to draw up a budget to work out how much you can manage to repay and over what duration. Look at your current salary and living expenses to work out an affordable payment plan that accommodates both parties.

Use an authorized overdraft

If you have a current account, you might be able to access an authorized overdraft from your bank. There are some interest-free overdrafts, but others can be expensive. However, going into an authorized overdraft will usually be cheaper than using a payday loan. Ensure that you stay within the overdraft limit as slipping into an unauthorized overdraft can be very expensive and lead to severe money difficulties.

A payday loan has its perks and may sound like the ideal solution to your money difficulties! However, you should continuously consider whether you have any other way to resolve your circumstances to avoid dealing with the dangers. We all want the confidence of knowing that we are making a wise financial choice. If you are unsure whether a payday loan is the best prospect for your situation, read our guide: Is a payday loan right for me?

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