Top 10 Payday Loans Alternative In The UK For 2023

Did you know that one in six Britons have no savings in their account? Yes, it is true, according to a Money and Pensions Service (MAPS) survey.

If you face the same situation, congrats, you are not alone. Many people in the UK have no savings, even as little as £100. Many people turn to payday loans when sudden cash emergencies strike, but they can be expensive and risky.

That’s why payday loans are not always a good option for borrowing money. But don’t worry, LoanFinderPlus is showing you some best alternatives to payday loans in the UK below:

10 Best Alternatives to Payday Loans in the UK

• Home Equity Line of Credit (HELOC): 

  If you own a home, knowing how much equity you can get on your home is essential, especially if you want to borrow money in the form of HELOC. HELOC is a form of secured loan and is approved based on your home equity. Usually, banks approve a line of credit equal to your home equity. The best thing about HELOCs is that these loans are offered at lower interest rates than payday loans.

• Short-Term Personal Loan: 

  Personal loans are a much better option to borrow money than high-interest payday loans. Personal loans are more affordable than payday loans. Short-term personal loanslet you borrow small cash and pay it back in a few months; even you can split the payments.

• Credit Cards: 

  If you have a good credit score to obtain a credit card, applying for a payday loan is a much better option. Many companies offer a credit cards at decent credit eligibility. You get several benefits via credit card, such as low-interest rates, earning rewards, helping build a credit score, and providing quick cash during emergencies.

• Paycheck Advance Apps: 

  Also known as early payday apps, they can help you to borrow money until your next paycheck arrives. Typically, these paycheck advances apps do not require a credit check and charge the lowest fees. These attractive features make such apps the best alternative to payday loans in the UK.

• Payroll Advance: 

  Discuss with your employer if you can take an advance on your pay. A cash advance on your payroll might be an excellent alternative to payday loans. You can pay back your advance early by doing overtime or a second job as a freelancer.

• Credit Union Loan: 

  Credit unions are non-profit private financial organizations owned and run by their members. Credit unions offer various services like saving accounts, loans, and educational loans. The best thing about credit union loans is that they are offered at lower interest rates, making them the best alternative to payday loans in the UK.

• Family/Friends Loan:

  Borrowing from family or friends can give you quick money, especially during emergencies. It also escapes you from high-interest borrowing options like payday or doorstep loans. A loan from family or friends is indeed the cheapest and safe borrowing option, but remember to repay your loan on time; otherwise, it will ruin your relationship negatively.

• Tame Your Expenses: 

  Another effective and best option to avoid payday loans is to cut off and control your monthly expenses. Thoroughly check your spending habits and see how to terminate the unwanted outlays.

• Avoid Late Payments: 

  If you cannot pay your expenses bills on the due date, discussing them directly with your creditor is recommended. Occasionally, creditors reduce your overall due amount or extend your payment time. Always avoid late payments because it could negatively hurt your credit score.

• Sell Unwanted Items: 

  If you are facing a minor and temporary cash shortage, then instead of payday loans, try to sell some things that are useless for you. Sell such items online, like on eBay or a pawn shop, to borrow money.

Take Small Steps To Build Your Future

Nobody can save themselves from financial emergencies. But it doesn’t mean that you can’t cope with it. A good backup plan and a slight monthly saving can reinforce you during your cash crisis. Taking small and bright steps today can make your financial future more stable and brighter tomorrow. You can consider the above alternative to payday loans in the UK, but in our view, try to decrease your expenses and increase your savings.