Wednesday, 2 December 2015

A sensible solution to a cash-strapped January

With the joys of the festive season now well and truly behind us, the month of January is upon us. For some, it’s an opportunity to get going on New Year’s resolutions, or the month of new beginnings. For others though, it can be a slightly grim time of the year, characterised by bitter cold and empty wallets.

Certainly for us mums with a young family, there’s no doubting that Christmas can be an expensive time of year, what with presents, activities, holidays, and even all the relentless social engagements. You wouldn’t change all of it for anything, I’m sure, but it can leave you facing unwanted things like inflated credit card debt and overdrafts.

But rather than stressing about being in the red, or worrying about covering January’s bills, there are simple steps you can take, and low interest loans may just present the best solution for you. Turning to credit providers comes with a definite stigma, and may not sound all that appealing at first glance. However, there’s quite a lot to be said for personal loans these days.

Rates may have been poor for savers in recent years, but for borrowers with decent credit histories, there really is good value to be had out there, as any price comparison site demonstrates. A big reason for this is that it isn’t just banks calling the shots anymore. Indeed, there are plenty of options in the way of alternative finance, particularly online peer-to-peer lenders.

Efficient, good value and hassle free

These are platforms which act as a medium for members of the public to lend any extra money they have directly to fellow members of the public in need of a loan. Without any middleman in between, it results in a hugely efficient process in which rates are mutually beneficial for borrower and lender.
As a borrower, that means a loan with an APR as low as 5%, with a lot of convenience and flexibility to boot. Applying is an entirely online process, and only takes a couple of minutes. You can also borrow anywhere up to £25,000, and pay the loan off over a period ranging from 1-5 years. Fees are minimal and completely transparent too, while some lenders like Lending Works don’t even charge anything for early settlements.

With a bit of cunning, you can also really use a low-cost loan to your advantage. A popular option is to consolidate debt, which makes sense if you’re stuck with a massive credit card balance this month. Why pay it off at a rip-off rate, when you can gazump it with a good value loan that saves you a fortune in interest?

Alternatively, you may want to use the loan to upsize your car, make improvements to your home, cover the cost of a holiday, or perhaps even just take the stress out of covering January’s bills. Whatever the reason, it’s clear that there’s no shame to be had when it comes to turning to a helping hand, especially if it assists your finances both in the short-term and the long-term. After all, bringing up a family gives you enough things to worry about – you don’t need to add money problems to the list too!

(this is a guest post)

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