Need cash quick? Explore your options with this simple yet detailed guide to the different sources of short term money available, analysing the pros and cons of each choice.
- You may have an interest-free option available to you
- Don’t just leap at the chance to get cash – choose your lender carefully
Cash Solutions
Payday is not coming, yet—at least not in the next couple of weeks. The wad of cash in your wallet has thinned. This may sound embarrassing, but you are already contemplating how you will shoulder the expenses for the next few days.
It is tempting during a time like this to borrow cash using the most common methods. Before you jump into doing so, however, you should be weighing the pros and cons of each option. Here are several ways for you to access extra cash when you find yourself needing a lifeline, divided into bank and non-bank categories:
Bank overdrafts
This is an example of a common method of borrowing that you can obtain from a bank. An overdraft is a facility added to your account wherein you allowed an amount overdrawn and will be charged a regular fee for the use.
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Non-bank cash solutions
Self-explanatory, but some non-bank solution examples are credit unions, payday loans, cash for gold and pawnbroking. You can check the descriptions of each below.
Credit unions
There are about 500 credit unions in the United Kingdom. Of course, you need to be a member with savings of one or two before you can take out a loan. Although this type of community organization is not-for-profit and exists to encourage people to save, it is also a good source of loans because of its non-capitalist orientation.
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Cash loans
Cash loans are also among the easily accessible means of getting money. If you need to get money fast you can apply here for a cash loan from Cashfloat. Just fulfil the requirements and you are on your way to getting approved.
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Cash for gold
So you have been keeping gold jewellery in a trinket. And now that you are in an emergency, you think of sending it by mail to the online companies that promise to exchange cash for your gold. If it is an heirloom piece or an accessory with sentimental value, it should merit thinking and re-thinking on your part.
Research on the cash for gold firms as there are reviews about them on the Internet. You should look closely at the gold market’s price. Observe how a particular company appraises gold. Compare and contrast. Know the advantages and disadvantages.
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Pawnbroking
Over time, pawn shops have been viewed less and less a place to avoid if you are an honest transacting individual. It is, in fact, a thriving segment.
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Other things to think about
Now that you know the advantages and disadvantages of each option, it is up to you to analyse which one you can use. But the more important thing to think about is: Do you really need to borrow via any of these means? Do you not, by any chance, have savings or an emergency fund you can use? The second thing is: Will you be able to pay back the money you will owe?
For the second consideration, you will have to make a short list of your salary and outgoings. Write the important ones first, such as mortgage (if you have one) or rent payment, utilities such as gas and electricity, council tax, food, travel, and education. Entertainment allowance can be forgone at the moment. Also think of other items you can do away with as you make a budget plan.
Get the sum and proceed to comparing the balance with the cost of borrowing money using these common methods. Each option differs in its resulting figure. It is necessary for you to tabulate each result if you are considering any of the options. That way, you will be able to see which can provide you with the best deal.
It can still be tricky even after you have weighed the pros and cons. But what matters most, is that you make a well-informed decision before acting on your desire to get cash from an outside source during a time of need.