Here’s the thing with emergency situations: they can come at any time; often without warning. It has happened with all of us at some point in time or the other.
For example, your salary could still be a week away and your vehicle breaks down. Basically, the worst possible time. If you find yourself in this situation, you’ll not likely have any other options but to get it fixed.
This could send you in a frenzy – where is the additional money going to come from? Will you be able to stretch your dollar till next month? What if another financial emergencies happens?
Case in point:
A friend of mine met with an accident few days back, again, at a time when he was low on money. He had to get several tests done to confirm his injury was just musco-skeletal pain and not any serious. He almost broke down due to the stress of having to come up with the money.
Now, it could happen to you as well, like if you booked a flight back home with all the money you had because you felt assured that payday was just round the corner. Now imagine that you somehow have to miss the flight and don’t have any money to book another ticket.
How on earth are you going to get back?
These are the times when you are cornered and are looking for easy ways to get hold of some money which you obviously intend to pay back as soon as possible. What are the financing options available for you? Let us now take a look at that.
Bank loans
It makes a lot of sense to go reach out to your bank and look for some loans, especially if you have built a good relationship with them. Banks are waiting for such opportunities and thus have several products designed for such situations. One can make use of mortgages or personal loans to get some loans. Dealing with your own bank for money is an easy to handle process as well.
However, there are a couple of hiccups you might face in the bank process. First and foremost, the process of applying for a loan and getting it sanctioned is going to take a while. Secondly, banks can charge some hefty fees during the repayment of the small loan.
Credit Unions
A credit union can be a good option for borrowing money. Credit Unions are entities not created for profit, which usually means that interest rates are in your favor. Lower interest rates mean you end up paying lower. The problem with the credit unions is you don’t get flexible products or some basic features such as check for your bank or ATM. You also stand at risk in the event if the union folds, as they are not insured.
Credit Cards
Life has become much easier for most of us post the introduction of credit cards. Most credit cards would allow you to loan out a certain amount. These loans usually don’t have processing fees and have quick turnaround times. On the other hand, the amount that you can borrow can be very little. The interest rates on these loans can be quite high as well.
Financing Companies
Over the last few years, payday loans are gaining popularity and it’s thanks to finance companies like Mr. Lender which are helping to make quick financing available to most people.
Generally, the eligibility criteria for payday loans are relatively low. For example, to get a loan from Mr. Lender, you need only:
- Be a resident of the UK
- Employed with £600 monthly income
- Within the 18 to 65 age bracket
- A valid debit card for transfer of funds
Bottom Line
It happens to the best of us: feeling financial pinch when our next payday seems like an age away. However, it will do you a world of good and help you save some money if you sit back for a moment and take a look at the options on hand and make a call accordingly. With so many options available, you can choose the option that best fits and suits your needs.
