• Mon. May 27th, 2024

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How to Borrow Money When Facing a Personal Financial Crisis?

The bear thought of being hit with a major negative event that could affect your financial health, such as a job, a car accident illness or a pandemic can keep almost everyone awake at night. However, the probability of dealing with something expensive and beyond your control becomes less threatening if you are truly prepared.

The latest events have turned life as we know it upside down. With almost half a million UK companies at risk of collapsing, many of them have halted or even closed indefinitely. This made workers face a huge amount of uncertainty as employees are asked to cut pays.

But since there’s a little guarantee about where to get the next paycheck, people are concerned about how to pay either their bill or their debts. This has convinced many of them to borrow as a way to alleviate their financial burdens as a last resort. If you are looking for a way to borrow money during a crisis, here are some avenues options you should consider.

 Logbook Loans 

Logbook loans have gained increased popularity over the years. A logbook loan fits in in such situations as it is designed for people who have issues getting a loan due to a bad credit score but have a vehicle they can use as collateral. Usually, Logbook loans require you to give away your vehicle’s registration or logbook in exchange for cash. So, even though you will temporarily hand the ownership of your car to the loan organization, you will still be able to use it as long as you pay back your loan. These types of loans are considered a quick way to get cash, and if you still have concerns about leaving your home during a pandemic, you can look for online logbook loans and fill up a form right from the comfort and safety of your home.

Payday Loans 

Payday loans are also known as cash advances as they lend small amounts of money. Typically, Payday loans don’t lend more £1,000, and some companies have a maximum amount they can provide. As for the repayment, this is due normally two weeks after you have borrowed, and it has to be paid off in one payment including interest and service fees.

Personal Loans 

Personal loans are often seen as unsecured loans as they are not backed by collateral. Personal loans refer to the loans borrowed from your bank, online lender or credit union and have to be paid back in fixed payments over a period of two to seven years. Unlike credit cards, the amount you can borrow with this kind of loan is usually higher.

One thing you should note if you are going for a personal loan is that your APR rate will be based on your credit score, bet-to-income ratio and credit report. That being said, if it happens to have a decent score, then, you will likely receive a low APR rate. On the other hand, if you have a terrible credit rate and you cannot qualify for an unsecured personal loan, you may be accepted for a co-assigned loan.


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