If your finances aren’t quite up to scratch, and you’re beginning to worry about how you’re going to get through each month, then you will probably be aware of a few options open to you. Some ‘solutions’ could appear and seem like such a good idea at the time, particularly if you find yourself in a vulnerable position. Unfortunately many of these solutions end up being the exact opposite; causing you more money worries in the future and making you worse off in the long run.
Your Bank Manager
In the past, you may have known your bank manager by name, and you could have relied on his/her advice if you were in a pickle. Nowadays, hardly anyone knows who their bank manager is, and if they were to go to them with a problem, it’s likely that they would be offered a solution, but it’s unlikely to be the right one. All bank staff has targets to meet and want to sell their products in order to meet them. You could be offered a consolidation loan, but it may not be in your best interests.
Payday Loan Companies
A payday loan is designed as a small, one-off advance on your wages which you must then pay back in full (plus interest and fees) by your next payday. If you’re having money troubles month on month, then taking out a payday loan could be the first steps into a debt spiral you may find it impossible to get out of. Borrowing money from loan sharks can also have its downfalls (particularly seeing as loan sharks operate illegally), so avoid them like the plague, however good an offer they may make you.
A Firm Offering to Get Money from Your Pension
If you’re contacted by a company who say that they can release some money from your pension then don’t take them up on the offer. Although it could feel like a quick fix now, the scheme is likely to be a scam, especially if you are not yet 55. If you’re younger than this then you cannot access your pension pot, no matter what anyone else says. Do not give out your details to anyone who offers to do this for you, as you may find that your pension holds nothing by the time you come to draw upon it.
A Company Who Offers You a Solution via Text, Phone, or on Your Doorstep
Being approached by a company who promises to help you through your money troubles is all well and good, but they’re not doing it out of the kindness of their own hearts. Making you aware of new legislation passed by government to help those in financial trouble can be heartening to read, but why would they tell you this if they couldn’t make something out of it too? If you want help for your financial problems, then seek out the help of a debt charity yourself. Never agree to pay for advice and never sign anything you haven’t understood first.
