Make Sure you do your Homework
Because you will be faced with a number of options which are only available at less competitive rates, it is absolutely essential that you take the time to compare some of the options which are available to make sure you get the best possible deal.
To help you along the way, we have drawn up a quick guide to 4 of the highest profile and most accessible options:
Option 1: The Bank of Friends & Family
Turning to our family and friends to help us through difficult financial times can offer one of the best options. Peer to peer lending is increasing in popularity and below we listed some of the positives and negatives.
Option 2: Guaranteed Financial Options
If you feel a little too embarrassed to ask someone close for a loan or they would like to help but cannot afford to lend you the money directly, a guaranteed loan may offer the ideal solution.
Option 3: Credit Unions
Credit unions are non-profit organisations which pass along their earnings to members in the form of lower fees and higher level of customer service.
For more information on Credit Unions, please check out dedicated Wikipedia Credit Unions page.
Option 4: Payday Borrowing
Payday borrowing is the marmite of the financial world (people either love them or hate them!).
When used as intended, they can offer a highly effective short term financial fix. However, due to the high interest rates and charges associated, payday lending is fraught with danger.
The negatives surrounding payday borrowing is well documented but the FCA (Financial Conduct Authority) is currently addressing many of the issues.
To see exactly what the FCA had to say, please visit the following article to see how the FCA sets out in detail how it will regulate consumer credit.
Commenting specifically on payday lenders, Martin Wheatley said:
Regardless of your preference, always make sure that you compare options from several different lenders to ensure that you find the best possible interest rate before signing the final paperwork.