Finance: Staying Afloat During in January

Why is it that the most expensive emergencies always seem to come at the worst times? Like the many times (in the many rental properties I’ve lived in) that my boiler has packed in during the peak of winter.

Just this week our cooker stopped working. Thankfully it was Boxing day when I heard the hissing and popping coming from the wall; right after we were done with the Christmas cooking. So the good news is that we managed to eat a delicious Christmas dinner, the bad news is that we’re both absolutely skint and can’t afford to replace the cooker right now. After all, it’s our poorest week of the year after spending all of our wages on Christmas shopping, and we’re not alone. So many people suffer financially at this time of year that debt charity, StepChange.org set up Debt Awareness Week last January to offer advice to those in need.

This time around I’m fortunate to have a parent who can help out, but many people don’t have that privilege and need to find alternative ways to get through the month. This is where taking out a small small loan can help make your January a bit easier.

Over the years these types of loans have been given a bad-rap, and it’s often been deserved. Payday loan companies have been accused of preying on the poorest in society with ridiculous interest rates and late payment charges. It’s a reputation that many companies deserve, but things are changing. Some short term loan companies are changing the way short term loans are handled by being as transparent and informative as possible.

If you’re anything like me, you dip in to your overdraft almost every month. According to a report from Which? back last year it’s well worth comparing your bank’s unauthorised overdraft charges to the interest rates of a short term loan as the charges on these types of loans are capped. The Which? report used the scenario of borrowing £100 for 28 days. In this example you’d only pay £22.40, whereas unauthorised bank overdraft charges can vary greatly and often amount to much much more.

So if you are in struggling and in desperate need of a short term loan this January, maybe give a small loan a try, and always borrow sensibly.

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