A loan can give you much needed finance, but the repayments can often be even more difficult to manage than the debts that you already have. But don’t dismay, because that dream car, engagement ring or holiday could still be achievable without necessarily borrowing more money. Here are some options to consider before you take the plunge with that new loan.
Raise the money another way
Has it ever occurred to you that you might have a big surplus of valuable stuff that you don’t need, or could do without? If it’s only a few thousand that you are looking for, why not do an audit of all your possessions and see if it’s possible to generate the required cash by offloading some of the luxury goods that are gathering dust in your cupboards?
Designer clothes, gadgets, consumer durables and jewellery all have good sell-on value. Even collectables such as magazines, books (particularly the academic variety) and records can fetch a decent amount online or in antique and second-hand shops. It may be a little heart wrenching to have to consider selling possessions with emotional value, but it’s worth considering a sale if you want to avoid the debt burden and interest associated with a loan.
Set up a payment plan
Sometimes you look at all of your different debts and conclude that there is no alternative but to get a loan in order to service them. One option, which you may not have contemplated, is a payment plan. Consolidating your debts into one monthly payment certainly saves time on monthly administration and can save you money in the long term. Additionally, with all your debts squeezed into one, you’ll have a clearer idea of what you need to pay each month. If you do consolidate your debts you might actually realise that you don’t need a loan at all.
Second job
Even an extra £150 a week can make all the difference and while the jobs market is a little flat at the moment, there is always a need for part-time labour in bars, shops and in the public sector. Part-time work is usually very flexible and even five to 10 hours of additional work each week could tip the financial balance back in your favour. There are countless agencies for temporary work and listings sites such as Gumtree and Craig’s List also post thousands of adverts for part-time jobs. You never know, you might even enjoy it.
Severe saving regime
How much of your weekly expenditure is avoidable? For some the answer will be zero but, for most, there are a surprising number of ways that you can tighten your belt if you want to try to raise some cash quickly. Give yourself a budget of £30 per week, for food and leisure: don’t order takeaways or even buy alcohol for home consumption for a couple of months. It sounds a little depressing but, in the short term, it can give you a really good indication of the sort of money that you can save if you really put your mind to it.
Compare loans online
So you have exhausted every other avenue and decide that the loan is the only way forward. In this case, the most important advice is not to rush into anything. There are a multitude of offers available if you compare online loans and it’s the same with any purchase. You should always look around to see what’s available before jumping in, regardless of how much you need the money.