Are you struggling to pay your monthly gas and electric bills? Are you unable to make payment for an unexpected repair service? Or, perhaps your hours have been cut at work and thus you have suffered a loss of income? Sadly there are many reasons why people feel the need to borrow money. This is especially the case in the current day and age, as it seems more and more families are feeling the financial strain by the day. 

If you need to borrow money you have various different options at your disposal. Unfortunately, it is becoming more and more difficult to lend via traditional methods, such as from the bank. However, don’t let this dishearten you, as there are many other types of lending available nowadays. This post provides information on some solutions that are available, but we would always recommend consulting with a financial planner first. Read on to discover more about the different types that are on offer nowadays…

Lending from a family member or friend

First and foremost, this is generally the best option to go for. Talk to one of your family members or a close friend and tell them about the situation you are in. Ask if you can borrow the money off them instead of borrowing off a financial institution or a lending company. If you do this, you won’t suffer at the hands of interest rates. Nonetheless, you need to be realistic with your friend or family member in regards to how quickly you can pay them back. Don’t take their kindness for granted. 

A payday loan

Unfortunately, not everybody has the ability to borrow from a family member or a friend. Everyone seems to be feeling the financial strain at present and thus those close to you may not be in a position to help out. So, why not consider a payday loan instead? This is a loan that is designed to tide you over until payday. It is a short-term solution, with most loans only lasting for a period of two weeks. This is ideal for those little emergencies whereby you need instant access to cash. For instance, your mobile phone may be cut off if you do not pay your bill imminently. 

A logbook loan

Last but not least, have you considered a logbook loan instead? This is a loan that is secured against your vehicle. Usually, you will be able to borrow up to 70 per cent of your car’s current worth. This means that you generally have the ability to borrow more money than you would with a payday loan. Moreover, logbook loans are usually paid back over a greater period of time as well, such as six months or a year. Thus, if you need to borrow a more considerable amount of money or you need longer to pay it back, this is the option to go for. 

All in all, there is no denying the worry that can be felt when you owe money but literally do not have the cash available. Nevertheless, with the three options that have been mentioned, you have a good solution to this problem.