Viable Personal Loan Options For People In Financial Trouble

If you find yourself in a sticky financial situation, you might have to look at the possibility of getting a personal loan. At the current time, there are lots of different options available that might be suitable. You just have to research them all in order to work out which is going to offer you the best deal. Presuming you have a decent credit score, you shouldn’t have too much trouble getting the capital you require. Some of you might only need a few hundred pounds, but others might have to seek more. Depending on how much cash you want, you should select the best option accordingly. We’ll do our best to give you the lowdown today and explain all the top loan solutions in layman’s terms.

Getting your personal finances in order is important if you want to limit the amount of borrowing you undertake. If you are struggling at the end of every month, it could be time to look at your situation and find ways of cutting back. Short term loans are never going to be a long term solution. If you have to borrow money for your bills every month, more drastic measures must be taken. Perhaps you could downsize your home? Or maybe you could get rid of that petrol-guzzling sports car?

Payday Loans

When it comes to getting loans fast, you simply cannot overlook the payday lenders. Some people even think that payday loans are the best financial aid available. Short term loans of that nature could help you to make ends meet at the end of the month. Contrary to popular belief, interest rates are more than fair so long as you meet your repayment obligations. While the companies that provide that form of lending have received a lot of bad press over the last few years, most of them practice in a professional manner. So long as you keep your word and never borrow money you can’t afford to pay back, using a payday lender could be the perfect solution to your financial issues.

Logbook loans

If you own a car, there is a new type of loan you might like to consider. Logbook lenders work by providing funds based on the value of your vehicle. Thankfully, you don’t have to hand over your car in order to receive the money. So long as you can prove ownership, the lender will offer you an amount of money to be paid back at a predetermined time. If you fail to make those payments, you risk losing your vehicle. However, that is all you will lose, and so it’s a pretty low-risk form of lending. No logbook loan provider will ever try to take your home to recover the debt. Just search online and make sure you read all the small print if you want to make sure you get the best deal. Many payday lenders are moving into this market. So, you could use the same companies.

Traditional bank loans

Since the global financial crisis hit, most high street banking groups have been hesitant when it comes to releasing funds to low paid clients. However, that is slowly changing, and so it is worth making an application. You will get better results if you arrange an appointment at your local bank and speak to someone instead of applying online. Even if they don’t offer you the full amount, they might have an alternative solution that will see you though. Perhaps a simple increase in your overdraft would be enough? Just speak to a representative, explain your situation and see what they come up with. If you have a mortgage with the bank in question, they should be more willing to offer you a loan.

Credit cards

While using a credit card to cover your expenses is not technically taking out a loan, it could be a good solution if you have a suitable credit rating. So long as you can afford to pay the money off in one installment, you shouldn’t pay a penny in interest. That means you can get the cash you require without having to apply for a loan. Of course, people slip up when they fail to clear the total balance. Credit card providers charge varying rates of interest on borrowing for people in different circumstances. You might get lucky and obtain a card with an incredibly low rate. However, most people end up paying somewhere between 10% and 30%.

Doorstep loans

Doorstep lenders are not quite as popular as they once were. That is because it is much easier to arrange lending online these days. However, there are a number of companies you could use if you get stuck. Doorstep lenders will come to your home and give you any money you borrow in cash. They will then return weekly to collect the agreed payments. Just be aware that some doorstep lenders are still charging phenomenal rates of interest. So, you should only use them as a last resort. Again, don’t make the mistake of borrowing money you can’t afford to pay back. There is no hiding from doorstep lenders. They know where you live, and so they won’t bother sending reminder letters. They will simply turn up at your door.

Having learned a little more about the best types of lending available to people who are struggling, we hope you will find a way of reducing your stress levels soon. Just remember that borrowing money to pay your bills is not a long term solution. If you can’t afford to make your monthly payments, you should look at ways in which you can reduce your spending. Either that or you will need to look for a job that offers better wages. Also, you should never borrow more money to pay lenders back. That is the start of a slippery slope that could result in you becoming entangled in a web of missed payments and final demand letters.

We all know how stressful it can be when you don’t have enough money to keep everyone happy, but at least you now understand the options in front of you.

Personal Loan Options

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