Note: This is a guest post — you can read more about our guest posts here.
Financial emergencies can happen even to the most organised of people in our fast moving modern world.
You might have car problems for example or the washing machine can break down well before your salary arrives? Perhaps you need extra money for an event the kids are taking part in or have to fork out for expensive vets fees right out of the blue? It’s possible you’ll need sudden travelling expenses or surplus cash for a multitude of other reasons.
This is fine if you have savings you can get at almost immediately, but if not what can you do? financial advisors will always tell you to consider borrowing from family or even friends first, though this in itself needs to be managed professionally. Arrangements need to be put in place and you must ensure to pay the money back at a mutually agreed time.
Sadly, many a friendship or relationship has been ruined by this all going very wrong. It’s a sensible alternative for sure, but sometimes you need to put your hands on cash very quickly. If it’s anything from £100 to £500 the banks won’t help in any case, and door step lenders should always be a final solution given the interest rates charged.
There is another way of course and though they’ve been highlighted for the wrong reasons in the press, short term loans can be valuable when used correctly. This means only using them in a genuine financial emergency and not as a long term debt solution. Basically you can borrow say £200 and agree to pay it back usually within 31 days plus interest. Typically this can be £25 for every £100 borrowed, and once you’ve been approved the money can be transferred quite quickly.
It’s best however to shop around and look for an alternative loans company who is flexible, has a good name and a great reputation. Those advertised in the media should ideally be your first port of call. A useful place to start would be www.wonga.com, where you’ll discover a company who lets you take control. They have a special tool enabling you to work out how much you’d like to borrow over how long within a 31 day period. So it’s possible to borrow say £100 for seven or 10 days if you wanted to.
The top short term borrowing solutions should come with no nasty shocks or extra hidden fees, so always bear this in mind. Likewise if you have trouble paying the amount you borrowed back be sure you can get assistance to help you over the crisis. All providers should be well regulated and there should always be someone at the end of the telephone when you need help.
Once you’ve repaid back the initial amount, borrowing from them again in the future shouldn’t be a problem. But whichever company you choose, make sure you can afford to pay the loan back on time. The great thing is your problem will be sorted faster than contestants leaving the strictly dance floor! So why not waltz your way to peace of mind with a pay day loan alternative?