If cash flow has been a problem recently, you may well consider taking out some form of credit, but choosing the right option to suit your situation can sometimes be rather stressful. Maybe you’re considering a bank loan, but are unsure about repayment times, or perhaps you need some money quickly and think that a payday loan is more suitable.
Whatever situation you find yourself in, this guide will help to ensure you make the right, informed decision about your finances.
Try A Credit Union
Many people opt for the Credit Union solution because, as not for profit organisations, they often offer great rates of interest that are enforced by law. A Credit Union is forbidden from charging more than 26.8% APR, and indeed often charge much less – a solution worthy of serious consideration for people looking to take out a loan with repayments over a long period.
Ask The Bank For An Overdraft
If you have a bank account and are looking for a short term advance, an overdraft is definitely a great solution. Often overdrafts can be obtained with little or no interest, which makes them the perfect option for people looking for that bit of extra cash to tide them over until payday. Usually a short and simple phone call is all that is required, and the money can be made available instantly.
Get A Logbook Loan
If you’re a car owner and you’re in need of a quick cash advance, companies like Mobile Money should be seriously considered. Your car is almost certainly of some value, and so organisations like this are designed to help you out, lending you much needed capital, against the value of your vehicle.
Apply For A Credit Card
Assuming you are accepted, a credit card can be a fantastic way of making sure you’ve got enough cash to see you though. Although at first many banks and companies will charge a significant amount of interest, once your credit rating has improved, you will often find this sum decreased considerably. There is usually a small charge for withdrawing cash from credit cards, but if you’re desperate, it is definitely worth it.
Whichever bank you use for everyday transactions, they will almost certainly be willing to offer you a long term loan. It is often the case that banks can afford the best interest rates, and so they are always worth checking out.
Sell Some Stuff
If you’re one of the many people who owns expensive jewelry or valuable ornaments, perhaps the best choice for you might be a pawnbrokers. In these troublesome financial times, these institutions have popped up everywhere, proving the perfect option for people with valuable items but no cash.
Let The Money Come To You
Although maybe a last resort, Doorstep loan companies can be very useful. Generally, most people find the application process simple, and repayments even more so, as more often than not, a representative will call at your home on a weekly basis to make sure you keep up to date and honor your contract.
Often receiving bad press recently, payday loans should be seriously considered if you are certain that your wages will go through at the end of the month. Although interest rates can be extortionate if you miss a payment, if you honor the contract, the rates are relatively competitive.