You’ve probably always been wary about borrowing money. The thought of owing money to someone else might make you anxious. However, on some occasions borrowing money doesn’t need to be as contradictory as it’s made out to be. There are plenty of ways to borrow money that provide sensible repayment options and lay everything out clearly. So, here are some safe ways to borrow money.
Lawsuit funding
If you have been injured in an accident that wasn’t your fault and have hired a lawyer to file a personal injury claim, you may be able to get a lawsuit loan.
This money can be used to pay for any necessities until your settlement is received. In most cases, there isn’t an obligation to pay the money back if the case is not successful. This kind of borrowing can be helpful if the accident has left you out of work and struggling to make ends meet.
Check out lawsuit loans info to find out more.
Overdrafts
An overdraft lets you borrow money through your current account by taking out more money than you have in the account.
There’s often a charge, unless you’re a student (see here for more information on managing money as a student). If you have a regular overdraft, they can be useful in helping you to keep going until payday. It’s a welcome reassurance.
Just don’t forget – it’s not your actual money.
Loans
Most banks let people apply for personal loans.
These are most commonly used for events like weddings or once in a lifetime trips. Banks also allow people to apply for business loans. If you want to apply for a loan, you’ll need to know how much you need and check your eligibility. Once you approach the bank, you’ll need appropriate documents.
It can be a long and complicated process, but it’s worth it to see if you’re eligible.
Pawnbrokers
You’ve probably heard of pawnbrokers and associate them with the Victorian times.
But, pawnbrokers are still around and they aren’t a bad way to borrow money. Most pawnbrokers offer part-time loans secured against items of gold, silver, or diamond jewelry or quality watches, and during the term of the loan, you can make payments of any amount and at any time.
Just pay attention to the terms and conditions.
A trusted friend
Realistically, while none of us like borrowing money from friends or family members, it is the safest way to do so.
Unlike a bank, they won’t add interest or an unrealistic timeframe. Sure, asking to borrow money regularly is a different situation, but if it’s a one-off there’s no harm in asking.
If you’d do the same for them then they will hopefully understand your situation and be willing to help you out.
