January is never a good time for our finances. In the wake of Christmas, and with heavily socialising over the New Year, your bank balance can take a real knock, and sometimes you need a little help to give it a temporary boost. Bills, direct debits, and plumbing crises wait for no one, so your only option might be to borrow some money and buy yourself some time.
Not all lending options are created equal, however. Some will prove far more beneficial than others, which means that it’s really important to do your research and understand exactly what you’re getting into. If you need some help, then here are three types of borrowing that you might want to consider…
Pawnbrokers are often the ideal option for those who are afraid of indebting themselves but desperately need some money. The way that they work is very simple: you hand over an asset, are given a monetary sum in exchange for it, and then have a set amount of time to pay this back. Provided that you meet repayments, there will be no ill effects, and you’ll have your item returned on the date that you agree. Even if it doesn’t go to plan, the fallout should be minimal, and the only negative effect is that your asset will be seized in lieu of payment.
#2: Credit Cards
Credit cards can also be a useful option, although interest rates and terms can differ between lenders. Still, they’re an expedient way of getting your hands on the money that you need, and are also a great tool for building a positive credit record for the future. It really is important to ensure that you can meet your repayments, however, as aside from the obvious fallout of reneging on your deal, you’ll also negatively impact your credit score, which could come back to haunt you later in life. For those who want to avoid impacting their credit score, consider alternative payment options, such as prepaid Visa cards . These cards are interest-free financial tools that will not affect your credit report, while allowing you to make payments and purchases where traditional credit cards are accepted.
#3: Personal Loans
Finally, you might want to consider a personal loan to tide you over. The beauty of these is that they’re not secured against any of your assets, so if you fail to repay them, you won’t lose your home or car as a result. Many people also appreciate their flexibility, and it’s one of the main reasons why such a large proportion of borrowers consider them as an option. With a variety of terms and interest rates attached to them, there are some fantastic deals to be found, and reliable companies can really be trusted to help you. A large number of these, such as Smart Pig’s Twitter, now boast a public presence, which should help to reassure you regarding the legitimacy and fairness of their loans.
If you’re in need of a post-Christmas boost, could one of these borrowing options be right for you?