It is always a good idea to make sure that you think carefully about any financial decision that you make. You will find that there are a lot of questions that you need to ask yourself and one of these things is about whether there are any alternatives. The reason for thinking about this is because you need to make sure that you are making the very best decision for you and your finances. Therefore, it is wise to think about everything that you might be able to do to help your situation and then you will know that you have made the right decision.

Not Buy the Item

It is good to start by considering whether you really need the item that you are considering buying. It might be that it is something that you urgently need, perhaps food because you have none or you need to pay a bill. However, people do borrow for all sorts of reasons and so if you can go without the item, then perhaps it is worth going without the loan. It is good to think about whether it is something that you really need or whether you will be able to go without it and still manage fine.

Use Savings

If you have savings then it can be best to use these to repay a loan. This is because the savings will earn very little interest but the loan will cost you money. You can always use the money that would have repaid the loan with to replace the money in your savings account anyway. It is understandable that you might be reluctant to use your savings but it can be a lot cheaper. If you are saving up for something specific it might feel hard having to use some or all of that money. If you have worked hard to save then it may feel hard too. However, you need to remember that it could make a significant difference and if you are savings for a rainy day or an emergency, this is the time to use the money.

Save Up

If you can wait a while until you get the money and save some up each month, then this will be cheaper than borrowing. Loans can be expensive and so you do want to try to avoid paying for one if you have to and so this could be a good way to do it. Of course, it is very likely, that if you are considering urgent loans, that you will not be able to wait.

Borrow Money

If you do not have the money, have no time to save up and have no savings to use for it, then you only option is to borrow the money. This is an option which may not be cheap but it will be helpful. If you need the money really quickly, then there will only be certain loans that will be helpful to you. Many take too long to arrange or are not suitable for buying anything you wish. Your main options will be a credit card, overdraft or urgent loan. The first two will only work if you have already arranged them and you will normally need to have a good credit record in order to do this. Therefore, you may need to look at the option of an urgent loan which could provide you with enough money to help you out. You can borrow up to a thousand pounds normally, depending on the lender and you will be able to have the money until you next get paid, when you will be expected to repay it in full.

It is always worth thinking about whether you should be using certain types of loan. This is because there are always advantages and disadvantages of every decision that we are making and we need to consider both. It can be too easy to just focus on the advantages but it is important to make sure that we see the other side of things too.

Advantages of Urgent Loans

An urgent loan is a way to get money really quickly. It is a payday loan and that means that you will normally be able to borrow between £100 and £1,000 and some lenders will be able to get the money to you within a few hours, although this will depend on the lender. Some lenders will also be able to offer money at weekends and overnight which means that you can get it even outside of normal banking hours. As the lenders do not worry about your credit score, it means that the loans are available to most people. This means that anyone who need money in a hurry is likely to be able to get the help that they need by taking out a loan like this, when other lenders will not be keen to let them have anything. The loan also gets repaid very quickly. You will need to repay it when you next get paid and this means that you will be able to clear the debt very quickly. This can be really handy for anyone that does not like to be in debt for very long. The amounts that you borrow are also small, between £100 and £1,000 which means that you have a better chance of being able to afford to repay compared with larger loans for much bigger sums of money.

Disadvantages of Urgent Loans

This type of loan can be expensive. This is because the lenders are taking on a high risk as they lend to those with a poor credit record. Therefore, they charge extra money in case the borrowers do not manage to repay the loan. However, you may feel that it is worth the cost because you need the money but you should make sure that you find out how much the cost will be so that you are prepared. It can be easy to try and guess the cost, but as most loans are charged using a mix of interest and fees it can be complex. It is therefore wise to ask the lender how much the cost will be so that you are clear on this. You need to work out whether you will be able to afford it because if you do not repay in time there will be extra fees to pay. The repayment is in one lump sum which means that it will be repaid quickly but does also mean that you will need to find a lot of money in one go. This does go out on the day that you are paid which should help with this but you need to make sure that you will have enough left to pay for everything that you need. You will also find that you can only borrow between £100 and £1,000. While this has the advantage of being easier to repay, it could mean that you will not be able to borrow enough for what you need. You may even find that if you are a new borrower, then the lender might want to try you out with borrowing a much smaller amount before they will then lend you more money, so it is possible that you may be even more likely to not get enough.