Taking out a personal loan in the UK may provide you with the breathing space you need during a financial emergency. ⭐ 6 best ways to cope up ⭐Apply Online ⭐Fast Decision
With the way the economy has been over the last ten years, millions of Brits would have undergone the worrying and unfortunate experience of a financial emergency. When you’re in one, it dominates your thoughts and it can feel absolutely suffocating. Going through a financial emergency does not mean that you’re a failure with money – what it means is that life, sometimes, deals us a difficult hand.
Most of the time, the financial emergencies which people experience are through no fault of their own – it could be ill health, it could be a fire in your home, it could be a car accident, or it could be paying for funeral expenses. These types of events disrupt our lives a lot and they normally either require us to spend a lot of money or they deprive us of the opportunity to earn money.
Here at LoanTube, we’re on your side, whether you borrow money from one of our trusted lenders or not. We wanted to write an article for our readers who were going through their own financial emergency so that we could show you there really is a way out and that there’s a brighter future ahead.
First, Don’t Panic
It’s easy to panic when you’re in the middle of a financial emergency. How are you going to pay for the car to be repaired when the bill is going to be that big? You’ve got to drive to work, you’ve got to drop off and pick up the kids from school, and you’ve been promising to visit your Mum and Dad for the last week now but everything else has just got in the way. Without the car, how are you going to cope?
Whatever the emergency you are facing, it’s very easy to get caught up in a cycle of concern and emotion. And when we feel worried and emotional, that’s the worst time to make a decision about anything, let alone money.
Take a few minutes, slow down your breathing, make yourself a cup of tea, and consider trying some of the following suggestions.
Second, Stop Unnecessary Direct Debits
If money is tight at the end of every month or if you worry that one big unexpected bill will tip you over the edge financially, it’s a good time to start a plan – designed to create some extra financial breathing space in your bank account. Part of the problem is that the internet has made it so easy to sign up for different services that we pay for every month by direct debit or by standing order.
Log onto your bank account and make a note of every single direct debit and standing order taking money from you each month. Do you really need them all? Could you happily go by without one or two or more of these services for a few months and then perhaps sign back up when the financial storm has cleared? You might want to get on the phone and haggle for a discount for your continued custom – you can search for great tips on how to get money off your Sky or Virgin bill among others online.
Before you cancel any direct debit or standing order, make sure that you don’t breach any minimum term contracts you have.
Third, Look at your Day-to-day Spending in the Short-term
The most comforting thing to know about financial emergencies is that, eventually, they will pass. The panic and the upset you feel now about wondering how to stretch the money you’ve got to cover the commitments is temporary.
If you think you’re going to struggle to meet your bills and other payments over, say, the next six months, it’s time to look at budgeting. You might want to try shopping at the local discount supermarket if you don’t already – critics rave in the papers and online about the quality of the food you can get there now. Many households save £30-£50 a week by switching their grocery shopping to a discount supermarket.
There are other savings you can make too. Instead of buying lunch at work and popping out for a coffee at the local Starbucks, why not bring in packed lunches and make use of the staff canteen? By doing that, you could save an extra £30-£40 a week.
By taking these two steps over a six month period, you’ll save between £1,560 and £2,340 – that’s serious money. Also, have a look at other ways to stop money leaving your bank account including using price comparison sites, shopping during sales, and taking advantages of discount vouchers on your mobile phone apps. You can even follow the top listed Personal finance accounts on Instagram to get back on your financial track.
Think of budgeting like exercise. If you haven’t gone out for a run for a long time, the idea of it seems quite daunting. But once you get into it and you start to see the effects, you actually start to enjoy going out three or four times a week for a jog because you feel the benefits in yourself.
The same is true for budgeting – even the word sounds a bit miserable. However, after a few weeks of doing it, you’ll not cringe every time you ask for a balance when you put your card in the hole-in-the-wall. You’ll start to feel proud of yourself that you have a little emergency fund – or should that be an occasional treat fund? You’ll become more creative with your cookery meaning that you enjoy your food more than before because you’ve made a delicious packed lunch or evening meal yourself. And you’ll pat yourself on the back every time you bag a big discount from one of your favourite retailers.
And every week, bit by bit, you’ll be moving to a place of much greater financial comfort.
Fourth, Ask for Help
Budgeting is great but what if you really need help right now? The first port of call should be your friends and family – they’ll likely be the first people to jump in and help, especially if they know just how much the current situation is worrying you.
If they can’t, your boss might be the next port of call, especially if you have a good relationship with them and if the business you’re working for is doing well. You could ask for an advance that you pay back gradually over the coming weeks and months. Alternatively, you can ask them for a pay rise or for extra hours. You know your boss better than anyone – try to find the right time to ask and try to show them how helping you will benefit them.
You could always ask Citizens Advice for guidance on hardship funds from the government and from your local council.
Fifth, Are There Ways to Bring Quick Money into your Household?
As we get older, our houses get more and more full of stuff. And let’s be honest – do we really need everything we’ve got? There’s always been a booming second-hand market here in the UK and that market has got a lot bigger since the advent of the internet with sites like eBay and with mobile phone apps like Shpock.
While you might not think there is a great deal of value in what’s lying around your home, it may be just the thing that someone else is looking for. Things that you’re no longer interested in might be something another person sees real value in and they might love to buy it.
Selling off your unwanted items is not a long-term solution to a financial emergency. However, the money you make from the items you no longer love nor want could make a real difference in your life.
Another major way in which the world has changed in recent years is the availability of part-time work – particularly in the gig economy. You could make money with Uber or Deliveroo. There are plenty of freelancing sites on the internet where, if you have a skill, you could sell it to others.
The most financially comfortable people in life are the people who have more than one source of income coming into their home. Even if you only work for an extra 8 hours a week in your spare time or when the kids are in bed, that could mean an extra £5,000 or more in your bank account every year.
Sixth, Make a Long-term Positive Change in your Attitude Towards Money
Last, what you’re experiencing now won’t go on forever although we do appreciate that it might not feel that way now. Try to focus on some of the suggestions we’ve given in this article – not only because you’ll get a real chance of earning extra money but mainly because you’ll begin to feel like you’re in control again.
Once this has passed, take stock and look at the way you handle money. Could you use some of these tips that help you through the short-term and apply it to the long-term of your life? We hope so and we’d love you to share your thoughts and experiences with us so that, with your permission, we can pass it on to other people who will go through their own financial emergency in the future. You might just be the inspiration who helps them through it! You can even apply for a personal loan to cope up with a sudden financial crisis.
More About LoanTube
LoanTube is a broker – not a lender. We don’t lend borrowers our own money – in fact, what we do is use our skills, knowledge, experience, and passion in understanding borrowers and lenders and matching them up so that everybody wins.
Sometimes, taking out a loan may provide you with the breathing space you need during a financial emergency if you are certain that you can meet all of the repayments in full and on time. Other times, getting a loan is not the right answer. At all times, getting a feeling of control and power back over your own life is the most important thing of all.
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