We all know this scenario – Unexpected medical bills, car repairs or more extensive investments. Unfortunately, one does not always have the money at hand and has to look for other ways to get it. The question is: What is the best alternative in this situation? Let's see what the various options are.
During the global pandemic, a lot of consumers and companies got into financial distress. To still keep the economy going, some states have decided to offer financial support packages. Unfortunately, these are (mostly) just meant for firms and not for private people. To get this governmental support, the companies had to fill out multiple forms and applications. But don't worry! There are also various options for consumers to get to their money.
To begin with: We highly recommend you first check if a loan is necessary before signing a binding contract. Suggestions are made for the general public and have to be considered for each situation individually.
An emergency loan doesn't exist like that. When you still want to get money fast, and without immense efforts, quick loans might be the ideal solution. The advantage is that handling and sending the funds usually takes a couple of days. Nevertheless, the majority of banks demand a good credit rating. Important factors are the monthly salary and a debt-free past. Even though the purpose for the application doesn't have to be disclosed, we might show you some reasonable reasons on why to get a quick or emergency loan:
Other alternatives to get the money are credit cards or overdrawing the bank account. The advantage of a credit card is that you can pay the costs instantly, but the creditor's bill has to be delivered next month or sometimes even in instalments.
Overdrawing your account can be tricky, so first, check with your bank if this is a reasonable option. Usually, one does not have to sign a binding offer or apply for a loan to overdraw the bank account. To simply put it: You just spend more than you actually have on your account. The debt is then repaid by the beginning of the following month. Depending on your bank, there might be some additional fees and interest.
Both options differ from bank to bank, and we recommend in both cases to consult a professional advisor.
Before you apply for a loan, it is crucial to analyse your financial situation in advance. Following indicators should be considered before signing a contract:
It is essential to have a clear overview of your budget before getting into binding contracts. This article doesn't want to encourage anyone to apply for a loan if this leads to indebtedness. Please take the above examples as an idea and find further information on our website or directly contact your bank consultant for individual advice
Emil uses his expertise to make a difference in the financial sector. He studied at the University of Southern Denmark and has been General Manager at Intelligent Banker since 2013, where he has helped more than 500,000 users from all over the world with their financial needs.