The financial mess has become a common part of almost everyone’s life in the UK. Indeed a bad phase affects finances, especially during the pandemic.
Recent studies show that most Britons are facing financial issues irrespective of large or small. These issues make them oblige to look for extra funding options other than their monthly income.
The worldwide lockdown has added more to the plight of the individuals here. Yet, when it comes to the solution to such a scenario, loans can be the additional funding source. You can generate extra funding besides monthly income.
In this blog, we will suggest to you some of the loan options, which can help you eliminate the financial mess.
Want Exact Solution? Here are some loans to consider
Loans have been a significant source of survival in a challenging situation. In the UK, the lending marketplace is enormous, and several loan options are there to utilize.
The best part is that loans are available irrespective of any credit history or employment status. It is possible only from the direct lending option, as lenders like AoneFinance are more flexible to their terms.
One can consider any of these loan options to save themselves from financial turmoil.
1. Personal Loans
Taking a personal loan is one of the systematic ways to fix your financial situation. Unable to pay your bills on time is one of the biggest causes of a bad credit score. Personal loans like an unsecured loan or no credit check loan are provided to help you out from the financial dilemma.
Personal loans are fixed-rate loans that let clients have short-term loans from private lenders, credit unions, and banks.
The common utilization of personal loans is to pay off credit card bills, personal events like weddings, parties, or personal emergencies. They are also helpful in paying medical bills and personal expenses like shopping and travel expenditure.
2. Short-Term Loans
However, the financial crisis is one of those dilemmas that need immediate resolution. Otherwise, it could lead to further unnecessary expenditure. Information about the “TERM” or “APR” of a short-term loan that is appropriate for your financial condition is essential.
Most personal loan terms are of a short-term range anywhere between 12 to 72 months. On average, the APR can be anything starting from as low as 8% to as high as 35%.
The loan term depends mainly on the borrower, as based on the term, the monthly instalment will be calculated. However, the APR is something that the bank decides based on the borrowers current and past financial history.
One advantage that short-term loans have on any other variety of loans like home, car, or education is that in most cases, for a personal or short-term loan, lenders are not looking for any collateral or assurances for approval.
3. Bad Credit Loans
Now for someone who, for any reason, has already missed a loan monthly instalment or defaulted on a credit card payment, getting a personal loan at a reasonable rate becomes very difficult. This is where bad credit loans can help you.
Due to any untoward accident, these loans are specifically curated for people who find themselves on the list of poor credit scores. Incidents can range from any medical emergency to natural calamity or loss of job, etc., but these loans will help you out.
In most cases, bad credit personal loans will have a higher APR, which means a higher instalment. Still, what such loans do is that it provides the borrower with a window of opportunity to get back on their feet.
If the borrower pays all monthly instalments of a bad credit loan on time, that naturally improves their credit score. It also allows them to go for proper personal loans in future.
4. Loans for People on Benefits
There is one option suitable for unemployed people or those who are physically disabled. It is loans for people on benefits. These loans are meant for quick funding, and the lender approves the loan applications based on the benefits you are receiving.
You need to understand that loans for people on benefits are not available from mainstream lenders. One can expect these loans only from direct lenders. They can accept the benefits as the source of making loan repayments.
These loans are available only in specific circumstances or for special people. The interest rates might be on the higher side, but there are more approval chances.
Most financial crisis happens due to unavoidable circumstances. One should always stay prepared for such mishaps to repeat themselves. Once an individual has managed to survive a financial crisis using a personal loan or bad credit loan, they should take the necessary steps to save up some funds as an “emergency fund”.
Another significant benefit of these financial sources is that you get them without indulging in too many obligations. The private lenders can approve them on your income basis.