If you have an emergency and suddenly need money, then you may wonder what the best thing will be to do. It can be a difficult situation too as it is easy to panic and worry about what might be the best approach. Unfortunately, when we panic, we tend to make rushed decisions without properly thinking through what we are going to do. This means that we can end up doing something unsuitable and then regretting it. However, if we plan carefully for potential emergencies then we will not make this mistake. It is a good idea to have a plan as to what you might do. For example, put together a number of steps that you will go through to see what action you should be taking.
Consider if the Payment can be Delayed
It is a good idea to start by checking whether the money really need to be paid out immediately. Think about whether you can delay paying at all. If it is a bill, for example, then you might be able to get in touch with the person who wants the money and ask if you can delay sending the money. They may agree and be happy to help you. If it is not a bill and you need to buy something, then think about whether you might just be able to wait until you next get paid in order to pay for it. Obviously, this will depend on what it is that you need, what the emergency is etc. but it is worth making sure that you really do need to spend the money right now. It can be that the panic has meant that we are not thinking clearly and that we have not thought this through properly.
Check Savings & Current Money
It is good to start with checking the money that you have. Consider what you have in your current account and in any savings accounts. You might have money there that you will be able to use to cover the costs of the emergency and you may have forgotten that it is there. It could be that you have forgotten how much you have and so it is well worth a look. You might be holding on to the money for something. If this is the case then consider whether the purpose is worth it. For example, if you are saving up for a luxury item, then it might be a good idea to use the money for the emergency and then save up again. Also, if you have money to fall back on, then this is just the type of situation when you should be spending it. You might be reluctant to spend your savings because of the interest that you are getting on them. It is worth checking how much this is, because borrowing money will normally be more expensive than spending your savings. This is because the interest that you get on your savings is likely to be a lot lower than any interest that you will pay on a loan.
Compare Borrowing Options
It is very wise to compare all of the borrowing options that you have. You need to make sure that you are using the most suitable borrowing method and that you are not paying more than necessary for the loan. This will take time and so it is a good idea to make sure that you have a good knowledge of the different types of loans. How much you can borrow with them, what they are suitable for, how you repay, how much they cost etc so that you can make a quick decision when you need to. Then you will know for sure whether a payday loan will be the right loan to use in an emergency or whether there are alternatives that might suit your needs better.
Who are Guarantor Loans for?
You may have heard of guarantor loans, but you might wonder who they are actually for. This is because you may not know much about them or may have just seen them advertised on the television. They are not traditional loans and so less people will have heard of them or used them. It is a good idea to know a bit about them though as if you need a loan then you should be comparing all loan type in order to decide which will be the best for you and so knowing about all of them is useful. You might possibly be asked to be a guarantor for this sort of loan too, so knowing what they are all about is very handy.