Unexpected Bills – Is A Loan The Right Option?

We are all aware that the cost of living is rising, food, fuel, rent, everything is costing more but wages aren’t rising at the same rate which for many of us means money struggles, especially if there’s a sudden unexpected bill.

Sometimes no matter how much planning and saving we do, there are times when something will crop up which will have us worrying about money. Broken appliances are often one of the instances where we are hit with an unexpected bill, it comes out of the blue and there’s no time to save for a replacement. If you have children or it’s an appliance you can’t live without such as a fridge or washing machine then it can be stressful trying to get the money together for a new one.

If you have family or friends who can borrow you the money until you can pay it back then that’s great and will mean you can replace the item and then repay them. If you don’t have anybody to ask then things can be a little trickier but there are ways you can try to make the extra money or borrow it if this isn’t an option.

You could sell items you have at home which you no longer use or need, this could help you raise money quickly. Try listing the items on Gumtree or on local selling sites before listing on eBay which charges fees. If you have a lot of little bits you could try selling them at a car boot sale.

If you don’t have anything you can sell then consider whether you can take on any extra shifts at work to increase your wages that month.

It’s also worth looking at your local for free sites in case anyone nearby is offering the item you need for free. Many people will offer older appliances for free so someone else can get use out of it and so they don’t have the hassle of taking it to the dump. If you see an appliance for free that would be suitable ask them if it works and if there are any problems with it so you don’t have a wasted journey. It won’t be top of the range but it could see you through until you have saved enough money to replace the item.

If the above suggestions aren’t an option then you might consider taking out a loan. There are several places you can do this, your bank, a building society or a loan company such as Zippa.

  • Compare various loans. Don’t jump head first into the first loan you see, it’s always best to compare a few different companies so you get the best rates available to you.
  • Use a comparison site to search loans you might be eligible for without affecting your credit score. You can also see what chance you have of getting each item which is helpful before applying. If you apply for credit and your application is declined this can have a negative impact on your credit file.
  • Before you take out a loan you need to do your research and make sure you know exactly what you’re getting and what you’ll be paying back. Also, check the terms of early repayments etc if you would like to repay it early.
  • Make sure you can afford the repayments. Regardless of who you decide to get a loan from you must make sure you can afford the repayments. If you default on your loan this will have a negative impact on your credit score and could result in you being refused credit in the future.

If you have money worries try to speak to a friend or family member, they might not be able to help financially but they may be able to offer some advice which could help.

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