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Payday Lending: The Alternatives

What is payday lending?

We’ve all been there. You get an unexpected bill through the post, your washing machine or car gave up the game with no warning; or both, if you’re really unlucky! Sometimes, no matter how good you are with your money, an unforeseen expense arises and you just need money to tide you over for a few weeks.

It’s times like this that people often turn to payday lending and although this is often a useful option it’s important to remember that there are alternatives to payday lending that may work out better for you. Before you can understand the alternatives to payday loans though, it’s important you understand exactly what a payday loan is in the first place.

A payday loan company provides people with a short term loan as an advance until next payday or their employer pays them. The loan is sometimes secured against the person’s next wage or salary payment (they normally ask for proof of employment for this) and a fee is charged in order to receive the cash advance before payday.

With so many payday loan companies out there, it can be very confusing for you to know which ones are offering you a fair rate. You also want to make sure that they are running the right number of checks (this is sometimes referred to as “responsible lending”). Unfortunately, if the company doesn’t take the time to do enough of these checks, they can end up lending money to people who can’t afford to pay them back at all, rather than people like you, who just need to a short term loan to cover an unexpected expense.

What are the alternatives to payday lending?

Here at PiggyBank we always want to be responsible, transparent, simple and human. So the first thing we’d always want you to think about is whether you could do anything to raise the money yourself. You can do this by reviewing your monthly payments and reducing expenses, working overtime, starting a second job or selling personal items.

Don’t worry though, we also understand these steps may not always provide cash quickly enough.

Which brings us to PiggyBank short term loans…

What are the benefits of PiggyBank short term loans?

Unlike some payday loan companies, PiggyBank short term loans are competitive short term loans to help you pay for an unforeseen circumstance. In short, we want to give you the money you need as quickly as you need it, but we want to make sure we check you can afford it without putting you financial difficulty. We take pride in being one of the most responsible lenders on the market and it is important to us that our customers are happy with our service and are comfortable with their repayment. And because we like to keep things simple and human, we’re not going to confuse you with a complicated application process. The whole application is done online and will take you under 5-10 minutes to complete. You simply fill in your details and leave the rest to us so we can make the necessary checks and reach a responsible decision. We will extensively consider whether you can afford to repay the loan and check your previous credit history and account details. If you're approved, the money could even be in your bank within 1 hour!

There are many services out there aimed to offer friendly, impartial advice if you feel you are struggling with your finances. Although we know our loans are only paid out responsibly, there may be other options available, like the ones mentioned above. We would always advise that you consider every path before applying for a short term loan.

See how much a short term loan with PiggyBank will cost you.

Before you take out a PiggyBank short term loan, you need to ask yourself whether borrowing money is the right thing for you. If you can cut down on your spending or put off buying something until you’ve saved for it, do that. If you are borrowing money to make repayments on other loans and debts, you may be in a vicious circle and it might not be the best thing to do. If you think you need help with your debts, you can contact the Step Change Debt Charity service at www.stepchange.org.

Why Choose Us?

  • Direct Lender
  • No Payout Fee
  • No Hidden Costs
  • Fast Online Application
  • Multiple Repayment Options
  • 100% UK Based
  • Fully Authorised by the Financial Conduct Authority
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