No money till payday?
Living from one pay cheque to the next is an uncomfortable situation for anyone. If, on top of that, there is a sudden unexpected expense, the family still needs feeding, but there’s no money till payday, it becomes an emergency situation. The need to borrow money fast is frightening for some, and embarrassing for most people. Sometimes family or friends will lend the cash, and even lend it free of interest, but it is hard to ask them.
If you can delay the emergency need until payday, then try to, but if the need for money is immediate, then your first stop is your bank. The bank can offer a temporary overdraft, as an advance against your pay, with an agreement that it will be cleared once your wages go into your account. If the amount needed is too much for an overdraft, there are personal loans available in the market, and depending on how much you need to borrow, also for how long, they can be a good option.
How to borrow if your credit rating is not very good?
Having no money till payday and not being able to access normal lines of credit, makes borrowing more difficult. You may have a bank account that does not let you have an overdraft, and you do not want to borrow that much, so a loan does not make sense. A quick decision is needed, and you do not want to borrow from friends.
Pay day loans are an option in this situation as they are short-term loans that often do not require a credit check; but you will pay high interest charges. It is always a good idea to be honest about your credit status when applying for any kind of loan. With a pay day loan, they are interested only in whether you have wages coming in and when they are due. The loan is very short-term, and they will not be lending thousands of pounds, so their risk is quite low.
Avoiding the reliance on Pay day loans
Most people would want to avoid the necessity of needing to borrow money, feeling anxious and worrying about it. Reaching the middle of the month and finding you have no money till payday indicates a lack of financial planning. Emergencies happen; cars and washing machines break down, and grandma would say this is why you save “for a rainy day”!
It makes sense saving a little money each month, just for the unexpected situations. If you have saved much money then you should consider using a higher interest instant-access savings account. Choose an account that allows you to withdraw once or twice a year without losing interest, and set up a standing order to put the money in there the day you get paid. Leave it alone until your next emergency, and you may not have to borrow money again!
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