The Rough Patch: Loan Alternatives in Tricky Times

Times are tough now, and there’s no shame in admitting you’re going through a rough patch, financially. You just need help, so you can get back on your feet and back to your regular life. In these trick times it’s a good idea to look into loan alternatives, so what are your options?

One option, if you have decent credit, is Zopa. But, what is Zopa? Zopa is an online financial exchange; in fact, it’s the first online financial exchange. Basically, it works off of people who have money saved, but want to earn a sizable interest on their money. They get this interest by lending it out to other people who need loans and charging them an attached rate. In fact, on this site, all of the money is in one location and the web site charges a low rate of interest to you. So, if you can’t get a loan from a bank, Zopa is a great tool to use.

Another option that might be available to you is the use of credit unions. A credit union is a program set up for people who have something in common. For instance, if they live on the same estate, live in the same town, or work for the same company. And, credit unions offer low interest saving and borrowing for their members. Plus, members invest whatever money they save, so they too can help another member. So, if you can become a part of a credit union.

0% credit cards are a third option for alternative loans. How do these credit cards work though? These credit cards offer 0% on purchases, which is then used for whatever you need a loan for. However, not everyone is approved for this card because of the low-interest rate. In fact, you must have perfect credit, so make sure to check your credit score before you apply for the card. If you have great credit then this is a great option, but what if you have bad credit? Well, then your options are limited, but that doesn’t mean you’ll have no options.

If you have bad credit pawn brokers are always an available option. However, most people tend to avoid pawn brokers, at all costs. This is because the interest rates are so high, and because you have to offer something for the loan. Basically, they offer you a short-term loan in exchange for a collateral. You’ll give up any item and they’ll loan you about half its value, and once you get the money back you can buy back the item for the original loan price plus some interest. If you’re in desperate need of financial help this is an option to consider.

Right now a lot of people are in financial trouble, so don’t think for a second you’re the only one having problems. And, there is nothing wrong with getting help, and these are all options that are readily available to you. It just depends upon the state of your credit.

4 Responses to The Rough Patch: Loan Alternatives in Tricky Times

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