We've all been in that situation, a crisis happens and cash is needed quickly but payday is too far away and the banks are closed.
It could be anything from an unexpected utility bill, a boiler repair, dentist fees or that one thing that happens out of the blue that nothing could have prepared you for...
Take last week for example. We'd had a lovely family day out at a fruit farm about 70 miles away from home. We'd made it there no problem and had a really fun time. Our car had never shown any signs of imminent breakdown but what do you known?
All of a sudden, the clutch on our car went. There was nothing we could do but push the car in to a nearby carpark and try to come up with a plan. We were stranded.
Fortunately, we are with the a recovery company and were able to get a tow to a nearby garage to continue home via taxi. However, the mechanics bill for fixing the car was high and a cost we hadn't budgeted for...we needed funds fast. Luckily for us we were able to sort out the bill and get our car back, but it did make Jon and I ask, what would or could we have done if we'd not been able to get the cash? How could we resolve a sudden financial crisis should one strike us again?
Here are my top 5 ideas for generating funds in a pinch;
1) Online auction and sales websites.
Whilst I am sure most of us have bought and possibly sold via the likes of Ebay and Gumtree a sale cannot be guaranteed and listings can take some time before they reach you.
A handy way to make money rapidly, but sales are not guaranteed and cannot always be relied upon within the timescale needed for the funds.
2) Turning a pastime in to a profit
There's many of us out there with a skillset, pastime or hobby that with the right guidance and know-how, can be turned in to funds.
For instance, I've been crafting for a number of years and have been asked 'Where did you get that? I'd love one of those'. Whilst it is really encouraging and a pat on the back, when you can turn around as say 'I made it.' it's also worth noting skillsets and talent are both marketable.
Now if one person stated they liked something, then it's logical that others will also. If people want something badly enough then they will pay for an item. If enough items can be produced and sold you get funds, and are a step closer to being able to deal with the crisis.
It's always worth factoring in however the cost of production against profits made to see if your investment will pay off, or at least pay off in time for the crisis you may be facing.
3) 5) Payday Loan Companies.
Nowadays there are a number of finance companies that offer short term loans. These loans are borrowed for a set period of time for a fee, and repaid on or before the end date offered by the company.
One such company is vivus.co.uk . Vivus offer their customers the chance to borrow between £100 and £300. The loan itself can be borrowed for up to 41 days with interest being paid on the loan at this time. A fixed interest rate means you know exactly how much you will be paying back without any hidden surprises.
The application process is also very simple. Select the loan amount required and for how long. Follow the online application and submit your request to the chosen company and then await the response.
Many companies allow you to set up an account and store your details, making future loans quicker and more readily accessible when required.
4) Pawnbrokers and Cash for goods Exchange stores
Whilst the inner workings of a Pawnbrokers may be a mystery to some, it's probably one of the oldest stores on your high street. The principle is simple for both Pawnbrokers and cash exchange stores, you take in any unwanted items such as old mobiles, laptops etc. they credit you money. After this, you have an agreed period of time to payback the loan on the item and collect your item. Alternatively, you may choose not to payback the loan and the Pawnbroker can then sell your goods.
With this choice you also have the option of borrowing the cash against the goods and then repaying the cash and getting your items back when you can afford the repayment or keeping the funds and forfeiting the exchanged item. Many Pawnbrokers and similar companies take old jewelry, high end electronic goods, Laptops and PC's for example as collateral against the loan.
5) Having a clear out.
I bet that if you looked around the room you are in, there are several items you no longer use, care for, or want.
There are many online companies who will buy your old CD's, DVD's, and old mobiles for example, from you. Some even offer you the chance to clear out old designer clothes and will purchase these items from their customers. Naturally, payments for goods are subject to their condition and age, and not all goods are accepted, but it can prove worthwhile looking in to should the financial crisis boogey man raise his head.
Apps to assist you with the process are available and as well as potentially being profitable, having a clear out can be a cathartic experience in itself.
Fingers crossed we won't need to raise such a large amount of money again so quickly for the foreseeable future, but it's good to have some ideas in mind - you never know.
