Budgets aren’t infallible. Unfortunately, those who need to follow a budget are more likely to have one that fails. Low income individuals and families simply don’t have the extra cash to funnel into savings or debt relief once they’ve paid for their monthly expenses. That doesn’t mean they don’t need either of these crucial financial tools. Savings is how any of us pay for unexpected expenses that exceed our pay. Without it, surprise repairs and bills pose a difficult challenge. If you, like many Americans, find yourself at a loss as to how you’ll pay for these additional bills, do you know where to turn to for help?
Asking the Bank
Traditional lenders are by far the first institutions that come to mind when you need to borrow. That’s their schtick, after all. Despite their pervasive nature, they don’t always offer the solution to short term financial problems. Banks have to follow procedures that take time to complete. Between in-person interviews and internal communications while reviewing your application, it can take so long that it surpasses the due date of your bills.
Banks also have standards that eliminate many low-income individuals from ever receiving a personal loan. They require a certain kind of financial profile with a prime credit score before they lend to any of their customers.
It may seem like an easy option. Your friends and family are probably already aware of your money problems. If they aren’t experiencing their own, they could help you with the occasional slip-up. They aren’t a bank, so it’s unlikely their small loan comes with interest or fees. In fact, you probably won’t have to sign a contract at all.
If this sounds too simple to be true, it’s because it is. What should be an impersonal transaction never is. Money has a way of spoiling friendships. As the borrower, you can feel uncomfortable indebted to your friend. As the lender, your friend can feel as though they’ve been taken advantage of. Without clear and defined terms, your loan can put strain on your relationship, and you can very easily lose a friend over money.
Asking a Direct Lender
When you value your friendships and need fast access to cash, a direct lender offers a practical alternative. Direct lenders, such as the financiers at MoneyKey, have streamlined their lending process to cut down on the time that it takes to connect you with the money you need. They don’t require lengthy interviews or prime credit scores before they’ll review and approve applications. You can see what you need to apply by checking out MoneyKey.com, but typically a direct lender only requires basic financial information.
They’re also a registered and licensed business that won’t make your borrowing experience personal. Save time and your friendships. When your budget fails, and you need a short gap before your next paycheck, see how a direct lender can help you. A small dollar loan from the right source can help you cover your surprise expenses without costing you a friend or time.
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