Alternatives to payday loans: four ways to find quick cash

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Most people at some time or another will need to access funds in a hurry. You might have seen a fantastic bargain in a sale, or maybe you need to visit a sick family member at the other end of the country but if you don’t have money in your bank account and don’t have the time to wait for a bank loan decision, then you will have to look for alternative sources of money.

alternatives-to-payday-loans-four-ways-to-find-quick-cash1. Log book loans

If you have a car, or even a boat and it’s less than ten years old, then logbook loans are a useful source of alternative borrowing. You will be offered a percentage of the value of your vehicle and, providing it’s in good condition, you can borrow from £500 to £100,000.

The funds will be in your account within an hour once your loan is approved. You will not have to pay back the sum in a single repayment; the loan can be repaid, with interest, in small weekly or monthly segments. This source of finance is also useful for those with a less than perfect credit score.

2. Credit card borrowing

If you have a credit card you can ask to extend your borrowing limit, in an emergency, and if your repayment level is good, this request should be accepted. It’s important that you try to clear your credit card debt at the end of each month, as interest charges can put you deeper in debt.

3. Ask your boss

The Money Advice Service suggests that if you are in work you could ask for a company loan. Most companies should look favourably on this request as they can simply deduct the loan from your salary. It’s possibly not such a great idea to put down the necessity of some brand new Jimmy Choos as your reason for asking for a loan, and you might want to think about whether it’s really worth getting into debt for a new pair of shoes.

4. Selling stuff

If you’re lucky enough to have some unwanted possessions, then see if you can sell them. Books and records are always in demand by second hand dealers, and you’ll be given the cash straightaway.

Vinyl is back in fashion, so rather than throwing away your old LPs, ring up a local record dealer and see if they might be interested in your collection – you don’t want to lug your vinyl into town, only to find that your records are too scratched or unsellable.

There are also an increasing amount of vintage clothes shops on the high street, if you have some good quality clothing, a designer label will help, then you should be able to sell your discarded wardrobe.

Finally, if you want to use your possessions as collateral, then your local pawnbroker should be able to help you. The age-old stigma of this ancient trade no longer exists and according to an article in the The Daily Mail even members of some of the UK’s most prestigious families have found this facility useful, as a source of emergency cash.

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2 Comments on “Alternatives to payday loans: four ways to find quick cash”

  1. I LOATHE pay day loans – daylight robbery & taking advantage of desperate people!! As a rule I’m against borrowing full stop. Obviously emergencies are an exception, but generally, “if you can’t afford it, you can’t have it” or just save up! If you think you can’t afford to save up, you couldn’t have afforded to repay it either. If you really *must* borrow, I would use interest free credit card offers and make sure it’s paid off in time. A bit strict but after seeing how debt can spiral, I feel really strongly about it.

  2. I’m very surprised that these are still legal. They can ruin someones credit rating in less than a month. They’re so dangerous and the fact that there are now ones directed toward students in nightclub toilets and via promotion on Facebook, well I dread to think what will happen. I guess some people think it’s the only option when they have a bill to pay which is very sad. These things are never targeted at people who can afford to pay them back, only people they know will make the company a buck.

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