Beyond Payday Loans: Alternative Ways to Manage Your Cash Flow


Payday loans are extremely expensive, short-term loans. It may seem like a very convenient way of borrowing money, but in reality, it is not.

It may help you in your financial situation by providing you with instant money, but the fee it charges over the money is quite high, which you will realize at the time your pay back. It can be £10 to £30 for every £100 you borrow.

For example, if your salary ends very early and there are one or two weeks between getting the next salary, you may go for payday loans.

These days, people are also preferring a loan type called a 15-minute loan. These loans are also short-term loans in which 15 minutes are taken by the lender to pay cash to those borrowers who are approved. Lenders may advertise that they will pay you the requested amount in 15 minutes, but this is not guaranteed.

But the question that arises is whether payday is the only option to tackle such a situation. Then the answer is no. There are alternatives to payday loans. As mentioned below.

Borrowing From Family And Friends

It is the best alternative to a payday loan if your family or friends agree to give you the amount you need.

Borrowing from them may also lead to no interest rate. But you should make a contract that specifies the interest rate, collateral, how much money you are going to borrow, and the duration in which you have to return.

If you fail to return the money, then there won’t be any bad credit scores. Instead, there is a high chance that legal action can be taken against you.

Preferring Payday Alternative Loans

The Credit Union Administration offers payday alternative loans (PALs). Money that is provided by the PALs can be used to pay off existing loans or avoid payday loans.

This loan provides the borrower with a lower interest rate and gives him more time to repay the money as compared to payday loans.

The application fee, which is taken by Payday Alternative Loan such as a 15-minute loan, is about £20 over the PAL amount that varies between £200 and £1000 and which you have to pay over the duration of 6 months.

Side Income Can Help

In such a situation, a part-time job can help a lot. You just have to do more hard work, but the best part is that you don’t need to ask for money from anybody, as there is no interest rate. You are not bound to do that job for long. Do it till you need it. For gaining some extra geeks you can start tutoring, run your online store, can become an Uber driver or you can do freelancing like web designing, content writing, video editing, and handling somebody’s social media accounts. Due to the increase in the accessibility of the internet, there are more job opportunities across the world.

Using Low-Interest Credit Cards

A credit card can be used instead of a payday loan because a credit card works on the principle that you use it now and return the money later. It is not recommended to use credit cards, but still better than using payday loans.

On every purchase, you get some points, which can be converted into money and used. Using credit cards also helps in making a good credit score.


Avoid using payday loans because they are a very expensive way of borrowing money. Instead, consider low-interest credit cards, part-time jobs, avoiding payday alternative loans, and borrowing from family and friends.

Rebecca Wheeler

Rebecca Wheeler