Have you recently assessed your finances and discovered a major issue? Do you have an emergency that means you need lots of cash fast? Then you’ll want to read this article carefully. There are many options on the table, regardless of your financial situation. You just need to work out which offers the most benefits for you. Depending on how much cash you need, you might want to consider different solutions. Also, the state of your credit rating will play a major role in the types of funding available. Don’t get yourself into a panic just yet. There is always a way of sorting your issues and rectifying the situation. It just comes down to how much time you’re willing to spend on research.
The post you are reading at the moment will discuss the most popular borrowing avenues. You don’t have to select any of the ideas we mention if you can come up with something better. We just want to give you the best information to help you move forward. We’ll talk about ways in which you can obtain money in many different circumstances. Hopefully, there will be something on this page that proves perfect.
Credit Cards
Credit cards are ideal for people who need cash in a hurry. Those of you who don’t have one at the moment only have to fill a simple online form. In most instances, your cards will arrive in the post within a couple of days. You can then start using them as you see fit. Just bear in mind that people with poor credit ratings won’t get the best deals. There are credit cards available for those with a bad history, but the interest rates are pretty high. In an ideal world, you don’t want to borrow money at more than 20% APR. However, sometimes there is no other option. Most credit cards for people with a low score start at around 30% APR. You can use comparison websites to ensure you don’t miss out on any better offers.
Overdrafts
It is possible that your bank might arrange an overdraft if you ask them nicely. Presuming you’ve used your account for more than a couple of years, there shouldn’t be an issue. Most people can get an overdraft of anything up to £1500. In special circumstances, you might get more than that. Just call your phone banking hotline or visit your local branch. A member of staff will go through all your options before making recommendations. Remember that you should never accept any money if you can’t afford to pay it back. Interest rates are usually very low when taking out an overdraft. So, you’re shouldn’t end up handing over a fortune when it comes to getting your account back in the black.
Short-term loans
Payday lenders are everywhere these days. Just search Google for the term, and you’ll encounter thousands of results. Thankfully, the industry is now regulated by the FCA. That means companies are no longer allowed to charge extortionate rates of interest.
Bank loans
So long as you have a good relationship with your bank, getting a loan isn’t difficult. You’ll pay more interest than you would on an overdraft. However, you can also get much more money. Most banks provide loans of up to £5,000 over a three-year period without too many checks. Those of you with existing county court judgements might struggle. In that instance, the payday lenders might be your best option. For everyone else, it is possible to get the cash you need instantly. You just need to get in touch with your bank and explain the situation. You will get as much cash as you need if you are employed with a good credit score. Indeed, banks will fall over themselves to provide your funding.
Peer to Peer Borrowing
There are lots of peer to peer loan websites around at the current time. They work in a slightly different way than you might expect. People with money to spare can open accounts and lend it to those who need funding. The borrower has to agree to a certain set of rules before the money is released. In most circumstances, the rate of interest paid is more than fair. Indeed, you can lend up to £3,000 for one year and only pay £4,000 back. That is not bad when you consider that you are borrowing from a private individual. The companies that run those websites offer guarantees to the lender. So, they will get their cash back, even if you don’t meet repayments. However, the firms will then sell your debt to a collector.
You can see from those ideas there are lots of solutions available. We’ve done our best to explain how each of them works. Now you just need to do some more reading. Contact your bank, payday loan companies and look online. That is the best way to ensure you don’t miss out on the best deal. Some firms offer great introductory deals that help to lower the rate of interest paid. So, you should take full advantage of that if you don’t plan to become a regular borrower.
Whatever happens, you need to keep a close eye on your finances. There must be something wrong if you can’t afford to pay your bills this month. Maybe you need to spend less? Perhaps getting a better job would sort things out? Those of you who need cash due to an emergency situation have no need to worry. You will always find someone willing to lend money to responsible people who need extra cash. Just don’t make a habit of doing it too often. Constant borrowing will mean your money dwindles away very quickly.
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