If you are facing a financial shortfall and you need assistance to pay off a debt or deal with a short term financial problem, it is important to know that help is available. Most of the focus on short-term financial solutions in recent times has fallen on payday loans, but it is important to know that there are many options available to choose from.
Payday loan companies have spent a great deal on advertising and promotional activities, which mean that many people will instinctively think of them. A payday loan can be a suitable option for some people, but there are many other options which may be a better fit for a number of people looking for a financial solution. Here are some ideas for an alternative to a payday loan:
Ask friends and family members
This is a solution that many people will consider to be far from ideal, but it is likely to provide a more palatable solution than payday loans. If you have friends or family members who can assist with a short-term loan, it may be of benefit to ask them for assistance.
Credit Unions
Credit unions have long been an important part of communities but in recent times, their importance has grown with more people requiring financial assistance and support. These unions are non-profit organisations which offer loans, current accounts and savings accounts. If you have struggled to obtain a bank loan, a credit loan may provide you with the funds you are looking for.
A guarantor loan
This style of loan sees someone that knows you acting as a guarantor for the money that you borrow. This guarantor is often enough to provide the lender with sufficient confidence to provide people with a loan who may otherwise have been refused. It is also the case that sometimes a guarantor loan will help people to find a more attractive rate of interest.
Budgeting loans
People who have received working age benefits for a period of at least 26 weeks will find that they may be eligible to receive a budgeting loan which can provide assistance in paying for essential items. The amount on offer from a budgeting loan starts at £100 and there is usually a period of two years to pay the bill, and this is on offer at an interest free rate.
Bank overdrafts
It may be that your bank will be willing to provide you with an overdraft facility, which will offer far more palatable rates of interest than a payday loan.
All of these solutions providing an effective alternative to a payday loan and if you find yourself needing financial support or assistance, you should strongly consider these options.