You might feel that you are hitting boundaries and winning in life, and suddenly, you are caught out. We know sudden financial difficulties feel exactly like this. It can come in the form of a boiler breaking down or your car refusing to start. At that moment, you need some money, and you need it yesterday. You are not alone, and sometimes, help is just a loan away.
However, not all traditional loans are created equal, and often, you have to look for faster alternatives from other avenues, especially if you’re dealing with bad credit.
That’s why, in this article, we will explore the top 6 financial alternatives you can choose if you aren’t able to get a traditional loan.
1. Get a Payday Loan
Before we dive into it, we must make it clear that payday loans should be availed of only in cases of emergencies. This is because they may have relatively higher interest rates that can be difficult to manage sometimes.
Additionally, you need to check if the lender is approved by the FCA and follows fair lending practices. You also need to remember to check whether there are any hidden fees or penalties for early repayment. All these will help you make sure you are getting the best payday loans.
2. Sell What You Don’t Need
You might not know that you have a gold mine at home. We don’t mean that literally. What we mean is, if you take a look around to see if there are any items that you don’t use anymore and are gathering dust, you’ll find something that you can sell for some cash. It can be an older iPhone in the drawer or an old vacuum cleaner you never threw away after getting a new one.
There are many websites like Facebook Marketplace, eBay, Vinted, and Gumtree that make it easier to turn your unused items into instant cash. You can also sell your older clothes in thrift stores. If you have a collection of coins or stamps, they will also fetch you cash. This will definitely make you feel the loss of a few items, but you won’t be in debt.
3. Return What You Don’t Use
Did you get that new jacket you didn’t really need last week? That impulse purchase could have landed you in trouble today. If money troubles are here and you are looking for avenues to get some cash, look for items you bought recently. If they are unused and within the return window, you can return them.
We understand that it might be your favourite piece of clothing. However, once the payday is here, you can always go and buy it again. For the future, we would also recommend that you keep a check on whether you are actually using the fancy things you bought. It would be wise to return them within the return window if you don’t find any use for them.
4. Get Help from Friends or Family
We understand it is not easy to ask for help from our loved ones. It may make you feel very vulnerable. That said, they should be your first call when things have turned upside down. They will support you in every way possible, and that is what you need in times of need.
When your loved ones show kindness, you shouldn’t blindly borrow from them. You should agree on a repayment plan and write it down so that you can avoid awkwardness later. The good part about borrowing from friends and family is that it typically won’t involve high interest rates, if any, or impact your credit score.
5. Check If You Can Get Government Aid
We understand that government aid might not feel like a quick fix. However, if you’re eligible for a loan, it might provide ongoing financial relief. There are millions of people who are missing out on benefits like Universal Credit, Employment and Support Allowances (ESA), or Cost of Living Payments because of a lack of awareness.
You can refer to the Government’s online benefits calculator or approach your local council to understand if you qualify for hardship funds or grants. Additionally, you could also check out if there is any other local support that is available in your area.
6. Ask for a Salary Advance
If you have been working for your employer for a while and have a good relationship with them, you should consider asking for an advance against your salary or even an employee loan. Many large companies have systems in place to help their employees in times of need.
These salary advances won’t come with interest and will be adjusted on your next payday, leaving you with no worries about paying it back. However, it will mean that your next paycheck is smaller. So, only borrow what you really need and think about how you will manage with a smaller paycheck next month.
Final Thoughts
When you are going through a financial crisis, it can feel overwhelming. You are worried about every debit that occurs and can’t seem to find ways to inject more cash into your life. At such times, it is important you don’t make hasty decisions and consider all alternatives before you consider taking a loan.
You might not have the liberty to wait for the other solutions to work, but there are chances that one or the other solution might prove more fruitful than taking a payday loan. Always remember that you are not alone, and every problem has multiple solutions.