We’ve all been there. An unexpected bill comes through the post or you need money for something that you wish you didn’t need to pay, meanwhile, your bank balance is looking slim. Panic starts to set in and you’re thinking of a million ways to overcome the problem.
In situations like these, it’s important to remain calm and rational so you can make the best decision for yourself and your financial situation. Taking on debt, although inevitable sometimes, should be avoided unless you have absolutely no other options. So, you need money quickly – what are your options?
Borrow from family and friends
The first place you should look is to family and friends who may be able to help you. It can be embarrassing and you may have to swallow your pride, but hopefully, you’ve got people around you that would be more than happy to support their loved ones if given the chance. This way is ideal because you may be able to avoid some third parties that want to profit from your situation. If there is no one you can turn to, you may have to look at other options.
Explore non-profit help services
If you don’t know where to turn next, then explore some of the services offered by non-profit organisations and charities. These can be a valuable lifeline for people that are in desperate need of help. StepChange is a good source of information for the types of services you can consider and you may be able to get help with a number of issues including food and money shortages. Hopefully, you should be able to find something here to help you but you may not be eligible for every service.
Consider selling unused possessions
If you’re still unable to get help, you may want to consider selling unused or unwanted possessions. Hopefully, you won’t have to resort to selling prized possessions, but selling unwanted items online can be a good way to raise cash quickly without incurring debt. If you have valuable items that you can spare then you may want to consider pawnbrokers who can give you cash for your items or loan money against the value of the item – although be careful if you’re loaning because they will charge interest to your repayments. Be sure you understand the full terms and conditions of any agreements you sign.
Avoid high-interest unsecured loans if you possibly can
You may be tempted to get a payday loan, or a loan for people with bad credit, but try to avoid these types of loans if at all possible. These services are very accessible and easy to use, but that doesn’t mean they are good options. They will typically add significant interest on the money you loan, meaning you may be stuck paying much more than you borrowed for some time. This can worsen your financial position substantially and you should be aware of the potential repercussions if you choose to go down this route.
Needing money urgently is never a nice place to be, but the choices you make can have a significant impact on your financial standing after the crisis is over. Avoid risky and high-interest loans where ever you can and call on the support of friends and family or non-profit services if at all possible.