Payday Loan Companies
People often vilify pay day loan companies because of the “high” interest rates and short time given to pay back the cash. However, the interest rates are only high if you don’t have the means to pay the cash back!
Let’s say you borrow £100 from a pay day loan company, on average you’ll have to pay back 17.5% interest, which is actually cheaper than a lot of credit cards. However, for every 2 weeks you fail to return the money, 17.5% is added on – leaving you with a big debt if it takes you longer than originally thought to save up the money to pay back! If you aren’t sensible and borrow more than you can definitely afford, you could end up paying back thousands.
Pay day loan companies are a good, fast, short term solution to financial emergencies; just be careful.
Ask Trusted Friends or Family
If you have a real emergency, then asking a trusted friend or family member to help you out could be an option. The good thing about borrowing money from friends or family is that they usually won’t charge you interest and won’t come knocking at your door to take your furniture if you haven’t been able to pay them back. The only big issue is risking the relationship if anything was to go bad!
Some people recommended never borrowing money from friends, but as long as you plan to stick to your word and prioritise giving the money back over going out/buying clothes etc you should be fine!
Use A Credit Card
If you have a credit card then you can use your credit limit up almost straight away, you just need to be aware of how much you’ll be paying back judging by the interest rate.
You should always be careful when using a credit card as it can be easy to let spending get out of control.
Pawn shops will lend you money, while holding some of your possessions as security. The stuff you give the company as collateral will usually be worth a lot more than the money you’ve borrowed, and if you don’t pay off the loan between 30-90 days they could very well sell your stuff.
All of these options carry risks if you fail to pay the money back, so remember to be careful when deciding the best route to take for your situation!