Are you facing a short-term cashflow issue?
When you’ve got essential costs to meet, payday can seem a long way off. Below are some options that you may wish to explore.
Ask for a pay advance
If you need money before payday, it’s always worth asking your employer if they’ll give you an advance on your wages. Be honest and explain that you are having a cash-flow problem and how an advance would help you manage.
Your employer may even have a hardship loan system for employees who are struggling financially.
Apply for an advance benefit payment
If you need help to pay your bills or cover other costs while you wait for your first Universal Credit payment, you can apply to get an advance.
The most you can get as an advance is the amount of your first estimated payment.
You can apply for an advance payment in your online account or through your Jobcentre Plus work coach.
For further details, see on the gov.uk website.
Using an authorised overdraft
If you have a current account you might be able to get an authorised overdraft from your bank.
These can be fairly expensive (although there are some interest-free overdrafts) but it will usually be cheaper than using a payday loan - as long as you stay within the overdraft limit.
An unauthorised overdraft, which is an overdraft not approved by the bank, can be very expensive and lead to serious money problems.
Borrowing from a credit union
A much more affordable alternative to a payday loan is a loan from a credit union.
There’s a cap on the amount of interest they can charge which reduces the overall cost of borrowing.
See on the MoneyHelper website for more information.
Deciding on the best type of credit for you
MoneyHelper has created a simple guide to choosing between different types of credit, including loans, overdrafts and credit cards.
For more details, see
Borrowing from family and friends
Borrowing emergency money from a family member or a friend can help you avoid the risks that go with payday loans.
But do make sure that both you and the person you’re borrowing from take the time to:
- Put your agreement in writing
- Work out