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Warning: Fraudsters are using our brand to target individuals. Loans 2 Go will never ask for upfront fees. If affected, please contact us & learn more here.
There are times in all of our lives when we are really stuck for money. Many of us struggle from month to month anyway due to the cost of living crisis. We probably fall into the “JAM” category – Just About Managing. We get by, but payday can never come soon enough!
The problem comes when there is some kind of extra demand on our finances and we simply haven’t got the money at the time to meet that demand. It’s times like these when it may be worth considering an emergency loan.
But what exactly is an emergency loan? And is it ever really ok to take out an emergency loan, or should we try and find some other way round our financial situation?
In this article we take a quick look at:
An emergency loan is simply a personal loan. It does not have to be a special kind of loan : the key factor is that you are able to get your money quickly to deal with your emergency.
For example, Loans 2 Go offer a range of personal loans. You can apply online and if your loan application is accepted, we aim to get your money to you the same working day, enabling you to sort out whatever kind of emergency you are facing.
Life is full of twists and turns, and an extra financial demand can hit you when you are least able to meet it. Some of the most common reasons that people need to boost their finances with a quick personal loan are:
In these kinds of situations, you need to find some money fast to get things sorted, and an emergency loan could be the only option.
In any financial situation, it’s important to explore all your options. In the next section we’ll cover the important things to look for when you are taking out an emergency loan. But always look at other options too. For example:
If you have savings put aside for a rainy day, perhaps now is the time to dip into them. It can be heartbreaking taking savings that you were planning to use for something like a holiday or special event, but it may make financial sense to do this, just to get you through the current crisis.
No-one likes asking for financial help from others, but it may be worth considering whether there is anyone who might be able to bail you out. Just make sure that you are definitely able to repay them within the time that you say you will, otherwise things could get a little awkward later on.
Many people use credit cards to pay for things that they can’t afford. The problem with this is that it is very easy to run up a significant balance on a credit card, and you will then be charged interest on this balance which will make it even higher. Many people then get into the situation where their monthly repayments are mostly paying off the interest on their credit card balance rather than the balance itself, leading to a spiral of debt that is never-ending.
If you decide to apply for an emergency loan, the most important thing is that you make sure it is affordable for you. If you can’t manage the repayments, you will end up in a worse situation than you are in now.
A responsible lender will work with you to make sure that the loan is right for you. As part of this, they will do a credit check on you, but many lenders will still lend to you even if you do not have a perfect credit score. The main criteria for both you and the lender is the affordability of the loan.
So when looking for an emergency loan you need to understand up front:
This last point – about early repayment – is also very important. If you are in the situation of needing an emergency loan, it may just be an issue about timing. Perhaps in a couple of months your finances will be sorted and you no longer need the loan. So you need to know if you would be able to repay your personal loan at this point without being charged any kind of financial penalty for doing so.
This is where Loans 2 Go can help. We offer a range of personal loans between £250 and £2,000. The usual repayment period is either 18 or 24 months, but you can repay your loan at any stage before then with no charge for doing so. So if you are looking for a reliable and flexible emergency loan, do bear us in mind.
We hope that the above information helps you to think through the pros and cons of taking out an emergency loan, and make the best decision for your current circumstances. And if you decide to go ahead, remember that Loans 2 Go offer emergency loans that may be able to help.
For more useful lifestyle and financial tips, visit us here again soon at Loans 2 Go.
Loans 2 Go is a trading name of Loans 2 Go Limited, registered in England and Wales. Company number 4519020. ICO registration number Z720743X. Registered address: Bridge Studios, 34a Deodar Road, London SW15 2NN. Authorised and regulated by the Financial Conduct Authority (FRN 679836). *Payment by bank transfer once application approved, subject to our working hours of Monday to Friday: 8am to 8pm and Saturday 8am to 5pm. All loans are subject to eligibility & affordability criteria.
As a lender, we pay commissions to credit brokers or other intermediaries who introduce customers to us. The commission we pay varies depending on the broker, the product offered, and the terms agreed with the broker. This payment is made by us and does not affect the interest rate, terms, or total cost of your loan.
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