General Description: Financial emergency situations have become very common in the lives of people in the United Kingdom today.
The tricky economic condition prevalent in the United Kingdom has made the lives of the common people in the country very difficult financially. Fortunately, emergency loans are offered by many lending companies which can help alleviate the financial problems of the people at least for a short period of time. Emergency loans are characterized by high interest rates and quick loan application approval times. There are a few different options available in UK for getting emergency loans.
You can take emergency loans from banks. Nowadays, both nationalized and privatized banks in the UK offer emergency loans. Mortgage loans given by banks fall into this category. Interest rates are considerably low with banks. The problem with banks is that they are not time-sensitive. Even for emergency loans, their loan approval times are pretty high.
Another option for emergency loans is that you can get hold of trustworthy lenders in your locality who can arrange for some short-term funds. Many people make the mistake of not having a written agreement when taking money during emergency situations from individual lenders. This can be extremely risky for both the parties. A proper agreement with the complete details of the loan amount borrowed interest rate and terms of repayment should be prepared and signed by the borrower and the lender. It is not a bad idea to have a third person oversee the process and sign on the papers. This type of emergency financing option is a very flexible option. There won’t be any restrictions with regard to the amount of money you can borrow.
If you are not able to find an individual lender who is trustworthy, then you can seek the help of your friends or relatives to get some funds arranged quickly. You can also ask your colleagues in your workplace.
Credit cards are very good options for emergency financing. Credit card bills are always paid at the end of a month and you can use the cards for expenses during the month. There won’t be any cash involved though. They can be used only in places which accept credit cards. It is very important to exercise control while using credit cards. Some people go overboard and end up spending way too much. This can give rise to more financial problems at the end of the month when you have to pay the bills. Also, credit card interest rates are always high and you must keep that in mind while using them.
Payday loans are also good for emergency funds. Payday loans are usually accompanied by interest rates higher than those quoted by banks and credit cards. But, payday loans are more appropriate for emergency financial situations. Payday loans are usually divided into two types depending on the repayment plan adopted by the borrower. If the borrower wants to repay in short installments, then he can take installments payday loans. Otherwise, he can go for the regular ones.
The options discussed above should be utilized strictly during emergency times. You shouldn’t give in to temptations and make use of them whenever you want.