Short on Money Before Payday? 8 Free or Low-Cost Options to Try First

Short on Money Before Payday? 8 Free or Low-Cost Options to Try First

Last updated: September 2026

Unexpected bills happen.

Your car needs repairing, the boiler breaks, an expensive bill lands or payday is still a week away. If you're suddenly short of money, searching for a quick loan can feel like the obvious solution.

But don't rush into an expensive payday loan.

From interest-free overdrafts and accessing wages you've already earned to credit unions and emergency support, there may be a much cheaper way to get through the month.

We've rounded up some of the places worth checking before taking out an expensive loan.

1. Check whether you can get an interest-free overdraft

Best for: A relatively small, temporary shortfall
Cost: Potentially 0%
Watch out for: Interest can become expensive if you exceed the interest-free amount

Before applying for a short-term loan, check what overdraft facilities are available from your bank — or from other current accounts.

Some banks offer an interest-free portion of an arranged overdraft.

First Direct – first £250 interest-free

First Direct's 1st Account currently offers 0% EAR variable on the first £250 of an arranged overdraft.

That means if you're approved for an arranged overdraft and only use £200 of it, for example, you won't be charged interest on that borrowing.

However, don't treat the whole overdraft as interest-free. Borrowing above the £250 interest-free amount is currently charged at 39.9% EAR variable, so we'd only consider the interest-free portion particularly attractive.

Interest free overdrafts are also subject to eligibility and approval.

→Check the First Direct overdraft

Our view: ⭐ Worth checking for borrowing under £250

If you only need a relatively small amount to bridge a temporary gap, a genuinely interest-free arranged overdraft could be considerably cheaper than taking out a short-term loan.

2. See if you can access wages you've already earned

Best for: Employees who are part-way through their pay cycle
Cost: Depends on your employer/provider
Watch out for: Taking wages early means receiving less on payday

Some employers offer Earned Wage Access (EWA) or salary advance schemes.

Instead of borrowing £100 from a lender, you might be able to access £100 of the salary you've already earned before your normal payday.

Your employer needs to offer the service, so you can't necessarily just download an app and sign up yourself.

Providers such as Wagestream work with UK employers to offer this type of facility.

There may also be a transaction fee, so check the cost before withdrawing your wages.

And remember: you're not getting additional money. If you access £100 early, you'll have £100 less available when your normal payday arrives.

→Read MoneyHelper's guide to salary advances

Our view: ⭐ Check with your employer before borrowing

For a genuine one-off emergency, accessing money you've already earned may make more sense than taking out expensive short-term credit.

3. Need money for food? Check the Iceland Food Club

Best for: Households struggling with the cost of groceries
Cost: 0% interest
Watch out for: It's specifically designed for food shopping rather than general spending

If the reason you're short before payday is your food shop, there's an interesting alternative to borrowing cash.

The Iceland Food Club, provided in partnership with Fair for You, allows eligible customers to borrow £25 to £75 initially at 0% interest.

The money is loaded onto a prepaid card which can be used for shopping at Iceland and The Food Warehouse.

The important bit is that no interest is charged on the Food Club borrowing.

You'll still have to repay everything you borrow, so don't take more than you can comfortably afford to repay.

→Find out about Iceland Food Club

Our view: ⭐ A useful option if food is the immediate problem

We particularly like that this is interest-free and designed for a specific essential expense rather than encouraging people to take out a larger cash loan.

Fair for You also offers other forms of borrowing. These aren't necessarily interest-free, so don't assume its other products have the same terms as the Food Club.

4. Check your local credit union

Best for: Smaller loans where you can't access 0% options
Cost: Varies by credit union
Watch out for: You'll normally need to meet membership requirements

If you genuinely need to borrow money and can't find an interest-free solution, a credit union is one of the next places we'd check.

Credit unions are member-owned financial organisations rather than payday lenders.

They can offer smaller loans, and MoneyHelper says credit unions are usually much cheaper than high-cost options such as payday or short-term loans.

The maximum interest credit unions can currently charge is:

• 42.6% APR in England, Scotland and Wales
• 12.68% APR in Northern Ireland

Those are maximums — individual credit unions can offer considerably cheaper loans.

Eligibility varies. Some serve people living in a particular area, while others are available through an employer, profession or another connection.

→Find out about borrowing from a credit union

Our view: ⭐ Worth checking before any high-cost lender

Don't assume that being rejected by a mainstream bank means a payday lender is your only remaining option.

5. On Universal Credit? Check for an advance

Best for: Eligible Universal Credit claimants facing certain costs
Cost: No traditional loan interest
Watch out for: It normally has to be repaid from future Universal Credit payments

If you're receiving Universal Credit, check whether you're entitled to help before borrowing commercially.

Depending on your circumstances, you might qualify for an advance or other financial support.

For example, a Budgeting Advance can help eligible Universal Credit claimants with certain one-off expenses such as:

• furniture and essential household items
• clothing and footwear
• home repairs
• funeral expenses
• rent deposits and moving costs

As of September 2026, eligible claimants can potentially receive between £100 and £812, depending on their circumstances.

It isn't free money. A Budgeting Advance normally has to be repaid through future Universal Credit payments, so those payments will subsequently be lower.

There are also different advances available for people waiting for their first Universal Credit payment or experiencing certain other circumstances.

→Check Universal Credit advances on GOV.UK

Our view: ⭐ Check your entitlement before taking commercial credit

Government support won't apply to everyone or every expense, but if you're eligible it makes sense to investigate it before taking an expensive loan.

6. Waiting for your first benefit payment? Check whether you can get an advance

If you've recently applied for certain benefits and are in urgent financial need, you might be able to receive an advance on your first payment.

These advances don't charge traditional loan interest and are normally repaid through future benefit payments.

Depending on your circumstances, help may be available if you're waiting for payments such as Universal Credit or certain other benefits.

The exact process and eligibility depend on which benefit you've applied for.

→Check benefit advances on GOV.UK

Receiving money earlier means you'll subsequently have repayments to make, so factor those deductions into your future budget.

7. Ask your council what emergency help is available

If you need money for essentials rather than simply wanting additional spending money, check what support is available locally.

Depending on where you live and your circumstances, there may be help available towards things such as:

• food
• energy bills
• essential household items
• emergency living costs

Schemes and eligibility vary around the UK, so check your local council's website rather than assuming you won't qualify.

You can also use MoneyHelper's emergency money guidance to see what other assistance may be available.

→Find emergency help through MoneyHelper

This should be one of your first stops if you're struggling to afford essentials.

8. Consider whether you actually need cash

There's an important distinction between:

“I need £300 in my bank account.”

and:

“My washing machine has broken and I need to replace it.”

If it's the second situation, you may have more options.

For example, an eligible customer might be able to use a 0% purchase credit card to buy the item and repay it over the interest-free period rather than taking out an expensive cash loan.

But this only works if you can comfortably make the repayments.

Don't withdraw cash using a credit card unless you fully understand the charges. Cash withdrawals can attract fees and interest and may not receive the same promotional 0% treatment as purchases.

And don't use 0% borrowing as an excuse to spend more than you otherwise would.

What about payday loans?

Payday loans can provide money quickly, but they're an expensive form of borrowing.

If you're considering one because you need £50, £100 or £200 to reach payday, we'd check the alternatives above first.

Already earned the money?
→ Check whether your employer offers a salary advance.

Need less than £250?
→ Check whether you're eligible for an interest-free arranged overdraft.

Need money for food?
→ Check Iceland Food Club and any local support available to you.

Receiving benefits?
→ Check whether you're entitled to an advance or other assistance.

Need to borrow and can't access the above?
→ Check credit unions before high-cost lenders.

If none of those options work, don't rush into the first lender willing to accept you.

Always compare the total amount repayable, not simply how quickly the money can reach your bank account.

What if I have bad credit?

Having a poor credit history can make mainstream borrowing more difficult, but we'd be particularly careful about searching for terms such as “guaranteed loan”, “no credit check loan” or “instant bad credit loan.”

A lender accepting you doesn't automatically make the loan affordable.

If you've been rejected elsewhere, check credit unions and any financial support you're entitled to before moving towards increasingly expensive credit.

And never pay an upfront fee to somebody who claims they can guarantee you a loan.

What if I need money today?

Start with the reason you need the money.

If it's for food, electricity, housing or another essential, look for emergency support first rather than immediately borrowing.

If it's a temporary cash-flow problem and you know you can cover the shortfall when you're paid, check your existing bank, employer and any interest-free facilities available to you.

If you're already behind on bills, credit cards or loan repayments, adding another debt could make the underlying problem worse.

In that situation, getting free advice may be more useful than finding another source of credit.

Struggling every month? Get free help

There's a big difference between an unexpected £150 car repair and needing to borrow £150 every month to pay for food and bills.

If you're regularly borrowing to make it to payday, speak to a free debt-advice organisation.

StepChange

StepChange is a UK debt charity providing free debt advice and support.

It can help you understand your situation and the options available without trying to sell you another loan.

→Get free help from StepChange

MoneyHelper

MoneyHelper is backed by the UK government's Money and Pensions Service and provides free, impartial money guidance.

Its website includes information about debt, benefits, emergency support, borrowing and managing bills.

→Visit MoneyHelper

You don't have to buy anything or take out another financial product to ask for help.

Our rule for this guide

There are plenty of companies willing to lend money quickly.

That doesn't mean we're going to list all of them.

We don't include payday loans or high-cost short-term credit among our recommended options in this guide.

Our aim is to highlight free, interest-free or lower-cost places worth checking before resorting to expensive borrowing.

We'll continue adding useful services as we find them.

Do you offer a genuinely low-cost alternative?

We regularly review this guide.

If you're a UK bank, credit union, fintech, employee-benefit provider, charity or other organisation offering consumers a genuinely interest-free or low-cost alternative to high-cost short-term borrowing, we'd be interested in hearing about it.

All services are reviewed before being considered for inclusion.

→Contact My Side Gig

The information in this guide is for general information only and isn't financial advice. Eligibility for financial products and support will depend on your circumstances. Always check the latest terms, fees and total amount repayable directly with the provider before applying.