If you are in need of funds that you do not have readily available, you may consider taking out a loan and borrowing money. While this may seem like a good idea, you must understand that you will be paying this loan back over several weeks, months and years. You will also be paying back much more than you originally borrowed. The best plan is to avoid borrowing money if at all possible. Below are seven effective alternatives that you can try instead of borrowing money and going further into debt.
Talk to Your Lenders
If you are behind on some of your bills, or even your home mortgage, contact your lender before you consider borrowing more money. Depending on your specific set of circumstances, your lender may be willing to set up special payment arrangements with you until you can catch up with your payments. This will help you pay your bills without going any further into debt.
Sell Your Unused Belongings
One of the easiest ways to make some extra money without too much hassle is to sell some of your belongings that you no longer use. You can hold a garage sale at you home, or work with a local consignment shop, and sell as many of your items as possible. You may want to use online sites, like Craigslist or eBay, to sell more expensive items, so you have a greater potential at getting a better price for them.
Get a Part-Time Job
The most effective way to secure the additional funds you may need is to get a secondary, part-time job. This will bring more funds into the household and provide you with more money to spend on the things you need and want to purchase.
Seek Advanced Payments
Depending on where you work, your employer may be willing to provide you with a small advance on your next pay cheque. You would need to speak to your employer to see if they offer this service and if you are eligible. Be sure that your employer does not charge interest on this type of advance payments before making the agreement. If you receive payments from the government, you may also be eligible to receive an advance on these payments in the event of a financial emergency.
Get Help from a Charity
If you are facing a financial emergency, check with several local charities, such as the Salvation Army, and see if they can offer you any type of assistance. Many charities help people out who are struggling financially, and they do not require that these funds be paid back.
Start a Special Savings Account
If you need fund to purchase something you want versus something you need, then your best option is to start a savings account. You should never borrow money to purchase something you want because it will just put your further in debt. Instead, set up a special savings account and put some extra money aside each pay period until you have enough funds to pay for the item in cash.
Do You Qualify for Benefits
If you are continuously struggling to make ends meet, you may want to see if you qualify for income support and any other governmental benefits or Centrelink loans. These benefits can offset some your household expenses, such as rent, utilities, and food, and give you more money to pay your bills.
Before you borrow any money, you must take a closer look at why you need the extra money in the first place. Consider if you really need the money or if you just want the money. This will help you determine which of the above options would work best in your specific case. Remember that it is never a good idea to borrow money if you do not have to, so review your options and try several alternatives before you even consider borrowing money.