In need of cash? are loans the best options?

There may come a time when you find yourself in a financial pinch. Whether you need to meet an outstanding payment or quickly fix something, such as your car, you will no doubt be wondering about the best way to get cash quickly. Here are the different options you have if you want to get hold of some cash, fast:

Personal loans

Personal loans are a good way to go if you have a good credit history and need to access cash. When it comes to personal loans you can choose between secured and unsecured loans. Secured loans are secured against your assets (normally your home) and as a result the interest rates can be very reasonable. If you choose an unsecured loan, be sure to shop around to find the best interest rates.

Credit card

Getting a credit card could be your best option if you need quick access to money. There are many zero per cent interest credit cards available that allow you to pay just that for the first 12-18 months, depending on the agreement. While this is a good offer, if you fail to make minimum repayments, you could lose your zero per cent deal and could be faced with interest rates of up to 25 per cent.

You should also bear in mind that you will be heavily charged for making cash withdrawals, so this isn’t the best option for those needing cold hard cash quickly.

Borrow from a friend or family

While borrowing from friends is generally not advised, if you’re in a difficult situation and have a friend or family who is willing to help you out, then it could save you having to pay high interest rates. When borrowing money from friends, it’s always advised that you write an agreement to work by, as this will allow you to be clear on the terms.

Payday loans

Payday loans are a form of high-interest loan that should only be sought out in real financial emergencies. If you have no access to an overdraft, family loans or credit card, then a payday loan may be your only option. A word of advice – never take out a payday loan unless you can guarantee paying off the loan as soon as you receive your pay check. Payday loans are in no way a long-term form of borrowing, with annual interest rates being as high as 4000 per cent.

Whatever the case – you should only take out loans if you can afford to pay them back. A loan is not for you if you have no income or savings, as you could find yourself in an even worse situation further down the line. If you need help regarding debt, make sure to speak to a financial advisor who can help you decide what to do next.