Overdrafts, Payday Loans and High-Cost Credit: Costs, Rules and Cheaper Alternatives

When money runs out before payday, overdrafts and short-term loans can look like quick fixes – but they can be expensive. This course explains how overdraft charges work, the FCA price cap on payday loans, what APR really tells you, the rules that protect borrowers, and cheaper alternatives and free help if you are struggling.

Tutwoo is an independent learning provider. This course gives general information based on published official guidance for the 2026/27 tax year (6 April 2026 to 5 April 2027). It is not personal financial, tax or legal advice. For help with your own situation, contact HMRC, MoneyHelper, Citizens Advice or a regulated adviser.

© 2026 Tutwoo UK Limited. This course was created in-house by Tutwoo and is our original work. It is for your own learning only: please do not copy, share, record or resell it.