Over the past few years, the number of consumers turning to short term loans in their time of financial need has risen sharply. Although short term loans are a fast and easy way to meet unexpected costs before your next wages arrive, the high interest rate attached to them makes it difficult for the majority of consumers to pay off and meet the financial demands of the month ahead. This often leads to a perpetual cycle in which the person who has borrowed the loan needs to borrow more cash, sending themselves further into a financial black hole. Fortunately, there are short term loan alternatives that everyone can access:

Borrowing money from family members

Although it may be hard to ask your family and friends for cash when you need it, doing so is a cheaper and more flexible alternative to using a short term loan. Not only will you avoid high APR rates that reach into the thousands of per cent, you will not have to worry about meeting a strict deadline for paying them back. If you have family members or close friends that you believe will be willing to lend you the money, turn to them first.

Selling your goods

Whether you have unwanted jewellery that you could pawn, or items building up that could be sold on at a car boot sale, selling your goods is one of the fastest and cheapest ways to access cash fast. It is thanks to the recession that a lot of people turn to car boot sales to buy the goods they otherwise could not afford to purchase. If you have junk lying around your house in the form of old clothes, CDs, DVDs, books, and games, you should book a space at your nearest sale and sell them on. Finding a pawn shop should also be relatively easy, as most town and city centres have one.

Extra work

If you can do some overtime at work, then do it. The majority of workplaces pay more for overtime hours, which means that you will make lots of extra cash, fast. Alternatively, you could try and find an evening job. Many people now take on evening work in bars, delivering pizza, or temping in call centres. By doing this, you will gather the cash you need to meet your financial demands, and once they have been met you will have extra to spend.

Regardless of the approach you take, there are many alternatives to short term loans that will allow you to meet unexpected finances. Although they make take more effort, they are better for your financial future in the long run.

Image credit: Chris Isherwood

Topics #Credit #Loans