If you're like most people, you have experienced your fair share of financial difficulties to work through. And when the need for funds arises, taking out a traditional loan can be costly when it comes to interest rates – and it can take several years to pay that loan off. Not to mention, there tends to be tons of paperwork to file and days of waiting to be had. But luckily, there are a few options that are more cost effective and less time consuming than the traditional bank loan process. Here are three interesting options to consider:
Get a Payday Loan
Getting a payday loan is an easy way to get the funds you need for an unexpected bill. It takes just a few minutes to apply and you can get your money usually within just a day or two, if not just a few hours. You need nothing more than proof of income, identification, and the willingness to agree to specific payment dates to fulfill the terms of the loan.
You'll find that most payday loan terms are associated with pretty steep interest rates, but the short term of the loan ensures that you don't end up having to repay the money for years, or even months. You can apply for payday loans both online and in person, but you'll need a bank account to have the funds transferred to when applying on the internet.
Have a Garage Auction
Hoping to sell a few of your unneeded things at a garage sale is probably not going to go far in helping you build up the funds you need, but auctioning off a few bigger things can certainly do the trick. Put up some flyers to build a little competition among neighbors in your community who might be interested in buying paintings, quality furniture, or other expensive items that you don't mind parting with.
Have everyone show up at the specified day and time that you want to host the auction, and give each guest a plastic paddle to make bids with. Then you can auction off your stuff to the highest bidders and hopefully come out of it with a big chunk of the funds you are in need of.
Get an Auto Equity Loan
Possibly the easiest, safest, and most cost effective way to get the funds you need without a traditional loan is to get an auto equity loan. This type of loan simply means that you use your vehicle as collateral to get the funds you need – it's referred to as a secured loan. And as a secured loan, you can expect to take advantage of lower interest rates than with traditional loans.
Like payday loans, the process of applying for auto equity loans is typically a quick process and you can get the funds you need within just a day or two. No credit or background checks are required when applying for an auto equity loan, and you can apply for a larger amount of money than what you can typically acquire through payday loans or auctions.
Car title loans are usually extended for a short period of time, usually within a month, so there aren't any long term commitments hanging over your head to worry about. And best of all, you get to keep driving your vehicle around during the length of the loan, so you don't have to change your lifestyle habits while you work to pay the loan back.
These ideas can be used on their own or in conjunction with one another to raise the entirety of your needed funds. Click here for more information on loan options in your area.