It’s hard to think that with the effects of the financial crisis and the credit crunch still lingering, there might be people in the UK that haven’t been affected in some way.
Be it a noticeable shortfall of money or the loss of a job or house, everyone, everywhere knows at https://www.turizmsayfasi.com/ least one person who has had to deal with crippling consequences of the current financial climate.
Recent announcements by the Bank of England and government analysts have suggested that the worst is over and that the UK is recovering. That may be easy for analysts to say in a press release or TV interview, but the reality is there are still people out on the streets of the UK that are wondering how pick up the pieces after having to either tighten their belts or even let go of treasured possessions and assets.
The younger generation of Brits will probably be able to survive as the employment market loosens up or maybe by taking on work abroad. For the middle aged generation, those two options might not be viable. The discouraging “you’ve got too much experience” retort to job applications is more often heard by older applicants, and family responsibilities can hinder any ideas of upping sticks and moving to (financial) sunnier climes.
The worst part is that sometimes all that is required is cash flow of sorts to get the individual back to their feet but with banks shutting their doors to lending, that can’t be easy.
With this in mind, we have assembled a short list of options available to the more mature person in times of need. Please bear in mind, not all of these options will be right for everyone but all are worth looking into if you need to shake off the shackles of the financial gloom.
1. Equity Release
Similar to pension release, equity release involves obtaining cash from the equity of any property you possess. As with pension unlocking, there are guidelines governing who can unlock the equity on their assets and the advice of an expert is always recommended.
2. Unsecured Loans
If you can see light at the end of the tunnel and think the repayments would not be too damaging to your current financial situation, there are always loan companies who will consider you for an unsecured loan. Do take into account though, that if your credit rating is not up to scratch, the APR on such loans can be quite extortionate as the loan companies take into account the risk factor of offering a loan to someone with a poor credit history (APRs of over 100% are not unknown). Do make sure you read your loan contract properly and do make sure you can afford the repayments.
3. Credit Unions
Credit unions are seen as a viable an alternative to loan companies. They are financial co-operatives owned and controlled by their members who are individuals who have either already borrowed money from the credit union as a loan, or are using the credit union as a saving scheme. The pros of a credit union are that they are built around their union participants and as such offer a more ethical approach to borrowing. becoming part of a credit union involves having your situation reviewed to make sure you fit the union member criteria. The criteria may be that you live or work in the same area, or that you are employed by a certain employer. Credit unions will always look at a person’s financial history and generally have limits of initial borrowing.
4. Pension Release
Pension Release or Pension Unlocking, is the action of obtaining tax-free cash from your pension fund prior to retiring. Understandably, for most people, cutting into the money that’s meant to support them in retirement is a bad idea but with the right guidance and independent financial advice from experts, pension release can be a perfectly viable option, especially if you’re using your savings as an investment for a home or other long term project.
5. Ask Your Family
If family or friends are able to loan you cash and you are happy borrowing from them, this can be a great way to sort out your financial predicament while avoiding the presence of a financial institution. As with an unsecured loan, be sure you can pay back your borrowing as your family and friends will not have insurance to cover them should you fail to pay the money back and you may end up putting the lender into a difficult financial situation of their own.