We’ve all been faced with unexpected bills and financial obligations, even if we budget to the last penny. However exploring your options and planning ahead will enable you to tackle the problem head-on when it happens and reduce the stress and anxiety of not knowing where the money is going to come from.
If you’ve found yourself in a temporary financial struggle, here are 10 ways you can get cash quickly to tide yourself over until the next pay check arrives.
A lot of people are reluctant to use credit cards even when they own one, but as long as you pay off the balance in full within the allotted time you won’t incur any interest. However if it’s cash you need, most cards allow you to withdraw from an ATM but it will carry higher interest than using it for purchases.
The Money Saving Expert lists the best UK credit cards in terms of interest and 0% introductory offers.
Pawning is the process of obtaining a loan by offering an item of value as collateral. This is usually done at a high-street pawn shop (Cash Converters is a popular chain). If you do not repay the loan on the agreed upon date the pawn shop will put your item up for sale to the general public.
Most of us have old electronics, clothes that don’t fit and other unwanted items collecting dust. If you need cash quickly, putting them on Ebay in a 3 day bid listing is a fast way to sell them. If it happens to be the weekend you could also go the old fashioned route and find a local car boot sale.
If you own a fully verified Paypal account you can now apply for ‘Paypal Credit.’ This adjunct to your regular account gives you a line of credit that functions much like a credit card, but without the card itself. Paypal credit is accepted everywhere Paypal is and they accept most people with a ‘fair’ credit score in minutes.
Line of Credit
Although they are rarer than regular cash loans, other lenders also offer lines of credit that are separate from credit cards. UKLoanCity.co.uk for example can connect you with one of numerous lenders that provide a revolving line of credit online and you only pay interest on what you draw from the set credit limit.
Ask a Friend
Not everyone is comfortable asking a friend for money but if you are desperate for a short-term loan it’s certainly an option. Maybe offer to do some gardening or work around the home, or promise to lend them money if they ever find themselves in need.
Payday loans are short-term loans (usually only 2 weeks) that must be repaid in full in one lump sum. They are often daunting because of the high interest, but if you have a genuine short-term expense that can be covered by your next pay check; they can be an effective solution.
Advance on Wages
Some employers allow you to have an advance on your wages – essentially an early pay day. Others allow you to borrow against your wages, where you repay by having a percentage of future wages taken to cover the debt. This is up to the employer in question; they are not obligated to provide this service.
Most banks will offer you an overdraft for your current account if it is in good standing. This means you are allowed to go in to the red to a certain limit without any charges for going ‘overdrawn.’ Unless you are a student however, this will carry interest.
If you own your own home or have paid a large chunk of the mortgage, have life insurance or other insurance policy, or a private pension – you may be able to take out a loan on the equity you have built or get an advance on the policy.