Emergencies can crop up at any time and create an unexpected situation that leaves you worried about finances. Whether it’s a broken down car or boiler repairs, emergencies can be costly and you may not have the immediate funds to cover the fees. However, there are several options available to help you pull through uncertain times.
- Payday Loans
If you need to borrow a small amount of money that you could comfortably repay before your next payday, a payday loan may be ideal for you. With bad credit payday loans available for those with poor credit history and flexible payday loans that offer various terms, there is a solution for all kinds of scenarios. However, before agreeing to this type of loan, you should check the interest rates to ensure you can meet repayments.
- Personal Loans
“Emergency loan” is a description of how you plan to use the cash, and you will often see unsecured personal loans described as such. There are a vast amount of personal loans on the market, so if you are considering one, you should take precautions and do your own research to see which is best for you. However, you want to look out for flexibility, lenders that do not hide extra fees, and possibly the potential for early repayment.
- Credit Cards
While credit cards tend to carry higher interest rates, you may be able to get a card with a promotional 0% APR (annual percentage rate) offer. By paying off the card balance before the promotional rate ends, you can avoid paying interest and saving yourself some money. This could be a good option if you want to avoid paying more than you have to and could cover the repayments before the 0% interest term is over.
- Banks Or Credit Unions
While many banks don’t offer personal loans, you could ask if they have any borrowing options available. There are also credit unions available, which are designed to provide affordable borrowing options to their members. Traditionally, they are small, non-profit financial organisations that aim to help those in need without leaving members out of pocket. They can usually be found online and you will need to apply to become a member.
- Emergency Savings Fund
Before applying for loans or forms of borrowing from a third party lender, it is worth considering if you have enough funds in your savings account. You should use the money to cover as many necessary expenses as possible, rather than paying the extra fees or interest that comes with borrowing money.
- Personal Borrowing From Family & Friends
It isn’t always the best idea to mix personal relationships and finances, but if you have trusted friends or family members, it could be something to consider. Be sure to set clear expectations, discuss whether interest will be added, and even write up a contract to make it official. If your friend or family member is willing to offer you an extended repayment term and no interest, this could be ideal for saving and protecting your credit score.
No matter what life throws at you, there are always options available to help you tackle any emergencies. If you are worried about your financial situation and covering the costs of unexpected situations, please use the Money Advice Service for free and impartial support.