Borrowing Options to Consider

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For many the increasing costs of living are taking a toll on many families, and thanks to the not so great economy, it is becoming increasingly difficult to make monthly salaries last until the next payday. This has led to the increasing demand for short and long term loans. Certain loans however can prove expensive unless the borrower is absolutely sure of the terms and conditions and makes the repayments by the due date. Therefore what are the alternatives to traditional loans?

Advances from employers – If your situation is a one off thanks to unpredictable circumstances, ask for an advance of your salary from your employer. Some employers will adhere to this on request.

Consumer Credit Counseling – Consumer credit counseling is a free service provided in the interest of the consumers. People are trained specially to be able to help consumers work out how to repay their debts with a repayment plan and also how to develop a budget to manage long term finances.

Work overtime or get a second job – If you find yourself short of money each month it might be worth looking into additional ways to earn more money. This could be by asking for overtime at your current job or even getting a second, part time job.

Borrow from a friend or family member – Borrowing from a friend or family member as a one off source of short term income is the most convenient method of finance. This way you can avoid high interest rates charged from other sources of loans.

Small consumer loans – A small consumer loan works very much like a typical payday loan however the rates of interest or APR are much lower, therefore this option is much cheaper. The only drawback is that these types of loan are subject to more regulation therefore people with a poor credit rating may not be eligible.

Payment plan with creditors – If possible, this is one of  the best options available. It involves liaising directly with the source to whom you owe money to negotiate more realistic repayments which might mean that you make smaller repayments over a longer period of time.

Online Personal Asset Financing- Individuals can borrow from other individuals in complete privacy using their personal assets such as watches, jewellery, antiques and even wine as security. Unbolted is a UK based online personal asset based peer to peer lending platform which is also in line with other pawnbrokers. There aren’t any credit checks issued and loans are secured againsts the borrower’s asset in an easy and transparent manner.

If you find yourself where you find yourself in need of that extra amount of cash, explore your options before jumping on your first idea to see if there is a better solution available.