During these difficult times where many people have lost their jobs, you may find yourself in a difficult position where you need some money fast.
Rent payments, mortgage payments, car loans and utility bills all stack up, and if you don’t have the savings to draw on, then you might feel very concerned and worried about what comes next.
One key thing to remember when you are in this position is not to keep it all to yourself. This can exacerbate the situation, putting a lot of strain on your mental health.
Indeed, studies show that debt can lead to anxiety, depression and relationship problems, especially if you are trying to deal with it alone.
Anxiety can cause a lack of sleep, and good sleep is needed in order to boost mood and motivation levels.
So, tell someone you trust about your issues and they may be able to support you. Shifting that burden can really make a difference.
Another key tip if you find yourself in need of money fast, but you have no savings, is to see what credit options are available to you. This DOES NOT include loan sharks.
Loan sharks might seem like the easiest and most convenient option, but the interest can mount up and they are not regulated, so you might find yourself in a difficult and concerning situation should you fail to repay.
The better option is to ALWAYS seek a responsible and regulated lender.
The emergency loan provider Wonga says that borrowing money in this way should provide a short term solution to your financial worries; “Using credit responsibly can help you bridge short-term expenses and ensure that you have the cash to meet your responsibilities and take care of your loved ones.”
In this way, you can borrow the amount you need, settle your debt, and then repay the emergency loan in regular instalments.
You can often use repayment calculators online to see how your repayment amounts alter depending on the length of the loan.
Of course, another option for emergency money would be to call upon friends and family to help you.
You may have a loved one who wants to help you and can cough up the money quickly by simply drawing it out of their savings account.
This is a good option for many but does come with its risks. You still need to talk sensibly and honestly to the person offering you the money so you can negotiate when you are likely to pay it back and what form this will take.
For instance, will you pay back a small amount each time you get paid?
Will you delay the payments altogether until you are in a better financial situation?
You should draw up an agreement and make sure both sides are happy, because you really do not want to fall out with your loved ones if something goes wrong and you fail to repay.
This has put many families in difficult situations and can cause a lot of heartache.
Whatever you need the emergency cash for, it is really important that you weigh up your options.
Look at your overdraft and savings accounts and see what is feasible and also consider what money you will be paid in the future, to see whether this can tie into your plans.
There are many people in similar situations that need emergency funds, especially since the global pandemic hit everyone hard, so needing access to cash quickly is not something you should feel ashamed of!