Debt, grants and how to avoid Payday loans

First Published: 06/11/2020

Debt, grants and how to avoid Payday loans

Payday loans are an expensive option if you wish to borrow money over a short-term period, as the interest rates can be very high.

There may be other ways for you to sort out your short-term money problems, so it is important that you consider alternative options before you borrow from a payday lender.

Johnnie Johnson Housing’s top tips!

  • If it is possible, do not borrow money to you cover essential bills, such as for food or electricity. Instead you may be entitled to benefits and it is important that you look into this as borrowing money from a Payday loan will only mean you have to pay out more next month.


  • If you use a Payday Loan to cover another debt or loan, this is called a ‘debt spiral’. If you are facing this problem, we recommend getting advice from an organisation such as StepChange who will be able to help you. Call StepChange for free on 0800 138 1111


  • Depending on what you need money for; grants may be a great option. Grants can cover items such as essential white goods … and is interest free!


  • Look into the possibility of using a Credit Union, which may offer to lend you money at a significantly lower rate than payday lenders. Please make sure you fully understand the terms and conditions and consider your options.


  • If you are in employment and have decent credit, you may be able to borrow money interest-free using credit cards. Please consider this option carefully as you will need to be able to pay the outstanding balance later.