Payday loans

Choose the cheapest way to borrow money

Image of cash

Payday loans let you borrow money for a few weeks to cover a shortfall until you are paid. You can normally borrow up to £1,000 for up to a month.

Payday loans are expensive when compared with other ways of borrowing money, especially if you take out several payday loans in a row. When you take out a payday loan, a credit check will normally be carried out.

Alternatives to payday loans

If you are struggling to make ends meet, you can get advice. Visit the Dealing with debt page for more help.

Borrowing money using a credit card or an authorised overdraft on your bank account will usually be cheaper than a payday loan. Before taking out a payday loan you could:

  • get help from a credit union. Credit unions offer loans and savings accounts to their members in a local community, organisation or company. Contact the Association of British Credit Unions on 0161 832 3694
  • check if you could get some money from the government’s Social Fund for emergencies. To find out what help you can get, contact Turn2Us on 0808 802 2000 or Citizens Advice on 08454 040506
  • download our useful tool to help you compare monthly and annual interest rates.

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