The following is a guest post.
The problem for many people is not that they don’t have enough money, but that the money doesn’t come through at the right times. It can get towards the end of the month, and even when it’s only a few days until payday it can still seem like there’s not enough money to last you.
A bigger problem is when an unexpected expense comes around and people don’t have enough cash left to get them through until the next check. There’s money available from a variety of sources if this is the case, but some are more trusted than others.
Obviously first port of call is always the parents, but not everyone’s folks have enough money themselves – especially if they are of retirement age – so even though you can always rely on them to help you, that might not mean in a financial sense. If they can lend you some cash then it’s probably your best option, as they won’t look for the same level of commitment to paying it back as banks or alternative financial solutions.
The aforementioned bank is the next step for many people, but they are reluctant to lend at the moment, and because of this people are looking for other places to get cash.
Thanks to a commitment to responsible lending, short term loan lenders are looking like an increasingly viable option. The online lenders of today are a world away from the “payday loan” companies of old that can still be found on the high street in some cities.
Some of the more flexible lenders allow customers to choose exactly how much they want to borrow, and they are able to choose when to pay it back, which means that the ball is really in the borrower’s court. Instead of enforcing a specific date at a specific rate, these companies will calculate exactly what you’ll need to pay back and tell you up front.
The lending industry has been under scrutiny for the past few years, so the responsible lenders are making every effort to operate above board – so if you are in need of emergency cash there is the opportunity available for you.
Andrea’s note: I know what it’s like to have too much month at the end of my money – I used to be in that position on a regular basis. I think there has definitely been a turnaround for many lenders as far as responsibility is concerned. That said, I also agree that the tightening of bank purse strings, combined with the economic downturn, has led more people to look at short-term borrowing options. If you’re in a pinch and need to borrow money, make sure the lender you choose has your best interest in mind! There are many scams out there and it’s important to borrow only what you need and are able to repay.