Do I Really Need A Loan?
Alternatives To A Bad Credit Loan
Before you take out any loan, let alone a bad credit loan, always ask yourself “do I really need to borrow money?”
Sure, you may need cash fast and you may see no alternative to applying for one of those high interest short term loans we see advertised everywhere but are you sure you can comfortably repay the loan without leaving yourself in difficulty again and are you certain there’s no other way?
If there’s something you need or want and you’re thinking about borrowing to get it then consider if there’s another way or if you really need it right now? Will it wait until you can save up for it and hence avoid that extra commitment and all the interest you’re going to be paying out?
A short term loan is basically just an advance on your next wages that you have to repay, in full, the next time you are paid … plus high rate interest ! So why not ask your employer for an advance – it’s the same thing but you won’t get stung for the interest. It’s got to be worth the question.
Family & Friends
Again, perhaps a family member or close friend can help you out – swallow that pride and ask but, whatever you do, make sure you pay them back when you say you will. They are trusting you so you should always appreciate that belief in you.
Look around you at all those unwanted items you have knocking around, all those clothes that don’t fit, that designer wear that you decided you don’t like, books you’ve read, toys the kids have grown out of, bikes that are too small, jewellery you have no intention of wearing again. Go up in the loft and see what’s up there that you’d forgotten about, all those boxes in the garage and the shed … you’ll be amazed at what you’ve got that’s surplus to requirements. Everything … and I mean everything, has a value and a potential buyer and these days it’s so easy to sell it.
There’s the obvious online auctions like eBay and others, then there’s other online classified ads websites, many of which are local, then there’s the local newspapers, and local general auctions but one of the best ways to turn trash into cash quickly is a car boot sale – pack up your car (share with a friend if you haven’t got a car) get up early on a Saturday or Sunday and turn up to your local boot-sale and start selling. You’ll usually have to pay a few pounds for the pitch but everything else you make goes in your back pocket – you’d be amazed at what sells!
Take A Part Time Job
If you’re constantly finding yourself short then look at earning a few extra quid – there’s usually plenty of part time evening jobs, or even just casual weekend jobs that could make each month that bit more comfortable
Start A Business
Sounds daunting but it’s not when you look at something simple like party-plan, or things that involve selling to friends, colleagues and neighbours – companies like Avon, Betterware, Ann Summers only sell this way and their agents all fit the business to suit their lives, have some fun and make some money along the way.
Cut Your Outgoings
It’s not just about borrowing and earning more – take a good look at all your outgoings too. Can you save on your insurances or your utility bills, do you really use the full TV package, are you on the best mobile phone tariff, do you get value for money from that gym membership, can you cut your car costs by downsizing to a more efficient vehicle or car sharing, do you need to go out quite so often. Make a list of your regular outgoings and see if there’s anything you can save money on.
Confront Your Debts
If you’re thinking about a loan because of your outstanding debts or commitments then think VERY hard … is it REALLY going to help? Sure, it may provide a quick fix and take the immediate heat off but, chances are that it’s not going to solve anything. Instead of taking on more commitments you should face up to your debt head on and start to manage it. You can do this yourself, with the help of the various UK charities like National DebtLine and support networks or via professional debt management companies.
The previous availability of Crisis Loans from the UK Government has now been discontinued (as of 31st March 2013). However, help may still be available from the following ways:
- Budgeting Loans – Click Here >>>
- Local Council Assistance (England) – Click Here >>>
- Scottish Welfare Fund (Scotland) – Click Here >>>
- Discretionary Assistance Fund (Wales) – Click Here >>>
- Your local JobCentre Plus to find out exactly what help is out there – Click Here >>>
Give It Some Thought
We hope we’ve provided one or two ideas and inspiration that gets you thinking of alternatives to simply taking the easy way out and turning to companies who specialise in short term lending and in making money out of an unfortunate situation. Think long and hard before hitting the apply button and always try to find another way.