More often than not there will come a time in life when you’re faced with an unexpectedly high bill, be it a phone or energy bill for example, or due to rotten luck your car breaks down and you need that extra bit of cash to get you out of a bad situation that you have found yourself in.
Most of us have been here and unfortunately got the t-shirt to prove it, however nowadays there are numerous ways in which you can obtain that extra funding to get yourself back on track, after all… no one likes the type of surprise that leaves you in financial hardship.
So what are the options you have? You could approach your high street bank and apply for a personal loan; personal loans are great if you’re looking for quite a large sum of money that is paid over a long term such as 36 months. However, this is not always the best option if a quick fix is what you need. High street banks tend not to lend smaller amounts over a smaller time period, most mainstream banks lowest loan amount is £1000 and their lowest loan term is over a 12 month period. In most cases loans from a high street bank are harder to be approved for due to their criteria and credit checks.
You could always consider a secured loan, now secured loans mean you have to rely on an asset of yours as collateral in case you cannot pay the loan back. This is a scary thought for most people, for instance if you use your car as an asset and there is a default in paying off the loan, the creditor can and most likely will take possession of the car as cover for the loan.
A Short term loans could be a further choice; these loans are known by a few different names such as cash loans, payday loans or installment loans. Taking in to account the bad press that these types of loans sometimes receive, they can offer a good way of gaining extra money when you need it. Paying it back over a short period of time avoids future problems and used in the correct way offer the finical solution which you might need. Payday lenders can lend anywhere from £50 – £1000 and normally are paid back within a month, hence the name payday loan. The market for unsecured short term loans is large so lenders are not hard to find, most offer payday loans online and some even have shops on the high street you where you can apply in store. Short term loans don’t require an asset of yours, such as your car, for collateral so you don’t have to worry about losing it… even if it is broken down!
If you happen to be very lucky in life you won’t have any surprising bills or payments that pounce on you suddenly, but for most of us this isn’t a certainty at all. It is nice knowing that there are avenues in which you can go down to get the extra funds when you want them in times of need.