We’ve all been having a lot of money trouble over the last few years. While the global financial collapse might have happened in 2008, the repercussions of that are still being felt around the world today. Inflation rates have been very high, and wages haven’t risen enough to account for that. So, we’re all worse off than we were at the start of the millennium. If you’re in a particularly bad situation and you’re having trouble making your household utility payments this year, you probably need some help and advice. Luckily, we’ve had our eye on the markets for a long time, and so we’re in the best position to point you in the right direction.
Throughout the course of this article, we’re going to highlight some of the best forms of lending out there for people in your situation. Of course, you’re going to need a good credit score to obtain funding from banks and credit card companies. That is why we’ve decided to include a couple of different types of loan that are available to people with poor credit history. Believe it or not, there is help out there, regardless of how many payments you might have missed in the past. So long as you don’t have CCJs against your name, it’s still possible to get the funds you need. You just need to be careful.
Credit Cards
If you haven’t already maxed out numerous credit cards, perhaps applying for one now might be a wise move? Most mainstream providers offer lucrative introductory deals that could see you paying no interest for the first twelve months. That means you can borrow as much as you like, and you won’t have to pay back more so long as you balance the account within twelve months. You should always read the small print though as there are usually a few actions that can cancel out the deal. For instance, most high street banks that provide credit cards stipulate the deal ends if you use the card to withdraw money from a cash machine. That’s something you want to avoid doing with credit cards anyway as there’s almost always a £3 charge.
Bank Loans
If you need a more “long-term” solution to your financial issues, then maybe it would make sense to book an appointment to see your bank manager. Bank loans were the most-popular form of lending before the recession hit, but most providers are a little more careful about who they lend money to these days. That’s because banks were blamed for the recession, and their care-free attitude towards lending was listed as a major cause of the financial meltdown. Even so, you can still get good rates from your banking provider on loans if you have a good credit history. You can improve your credit score at any time by taking certain actions, and there is lots of free information online that explains how to do that.
Payday Loans
Short-term and payday loans are brilliant for people who just need a bit of cash to keep them going until their wages hit the bank. If you need anywhere from £100 to £1000 for less than a month, payday loan companies are the way to go. The only real downside is that you can no longer access rollover payments more than twice due to a new FCA regulation. However, the interest rates you pay on any money borrowed are very low if you stick to the original agreement. Of course, these firms do charge in excess of 3000% APR if you mess them around. For that reason, you need to be 100% certain you can honor your obligations and make repayments at the times stipulated.
Online Auction Websites
If you’re over the age of 40, the chances are you will have some pretty valuable items around your home. Selling them via online auction websites like eBay could help you to raise the cash you need. Just make sure you understand the level of “sellers fees” before you list an item. Also, you’ll need to think about delivery costs for anything over a certain size or weight. Most people choose to use couriers these days as they’re much cheaper than the post office. Alternatively, you could simply stipulate that the buyer must collect the item from your home. You are free to list items for any amount of time you see fit. So, you could advertise them for sale for as little as one day or as long as one month. Longer listings usually attract more interest and better bidding wars towards the end of the auction.
Downsize Your Home
While moving into a five-bedroom house might have seemed like a good idea when cash was abundant, having such a huge expense on your hands probably isn’t doing you any favours. With that in mind, you should take a look at alternative properties in your local area and consider downsizing. If you’ve already paid a lot of money off your mortgage, downsizing could mean you end up with lower monthly payments and a large sum of money in the bank. Of course, whether or not you do that will depend on the size of your family. Presuming you have three children or more, it might be difficult to find somewhere smaller or cheaper and still keep your quality of life. Remember, there are laws in place that explain the maximum age for which a child can share a bedroom with a sibling of the opposite sex.
Remortgage
If all else fails and you can’t downsize your property, it might be time to remortgage to get the funds you need. That can be a risky tactic as it will mean your payments carry on for even longer than they would have done. However, if you need cash fast and you’ve exhausted all the other suggestions in this post, it could be your only choice. Just make sure you check rates with lots of different providers before signing anything.
Well guys, now you know how to keep your heads above water, we hope the amount of home repossessions happening in the UK will start to decrease. No matter what situation you find yourselves in, there is always a way out. You just need to find it!
