6 Ways to Source Funds Without Taking Out a Personal Loan

A personal loan may seem to be the quickest way to meet your need for funds. However, you will need to repay the loan monthly and if you are not sure you can make the monthly payments, it's best that you do not take out a personal loan. Your ability to repay your loan should be your primary consideration before taking out any loan, especially if what you are applying for is secured by collateral like your home for example. In case you default on the loan, the lender can and will foreclose on your asset, something that you wouldn't want to happen.

You may want to explore other means to source funding without the need for a loan. Of course, it depends largely on the amount you need. At the very least, you may be able to raise a part of the amount of your requirement so you will only need to borrow less money.

You Can Borrow from a Relative or Friend But...

Perhaps the easiest thing to do is to ask a friend or relative to lend you some money. However, make the request only if the friend or relative understands your particular situation. You may want to think twice if you know beforehand that you will not be able to repay the loan as you will be risking your relationship. Depending on their financial condition, parents sometimes grant generous loan terms to their children who need assistance.

Sell Some of Your Stuff!

Alternatively, you may want to sell off some assets to raise the amount you need. You can dispose of vehicles, real property, art work, or anything you own that have considerable value. You may even hold a yard sale and turn those unused items in your home into cash. Or, you may want to offer your old books including college text books, CDs and vinyl records on eBay or Adverts Ireland.

Find Another Income Source

If your need for funds is not immediate, consider taking on a sideline or another source of income. If your evenings or weekends are free, you can take a second job on a temporary basis until you're able to save up the amount you need. You can apply to work part time at a retail or convenience store or do some telemarketing. If you are a college student, you can consider offering tutorial or typing services.

Turn to the Internet...

You can also check the Internet for home-based working opportunities. There are many sites that offer telecommuting jobs like typing and proofreading of papers and other documents, conducting research and transcription of audio materials. The amount of work you will have to do depends on how much you are willing and can do, and what your online clients require. However, do watch out for the scammers. Never join employment programs that require you to pay upfront or buy certain kits from them.

...or to Avon and Mary Kay

If you possess people skills, you may want to sell Avon, Mary Kay or other similar products. It is easy yet it can be a lucrative source of income. You call on people, ask on their needs, introduce your product, and if they're interested, you can have their confirmed orders.

Cut Back on Your Expenses

Still, you can just explore various ways on how to cut down on your expenses and pool your savings for what you need. Store brand soaps, shampoos and other personal items cost much less than the name brands. You may want to clip coupons and wait for store sales when making your purchases. Carefully plan your menu and follow it. Limit purchases to your listed items especially for grocery goods. Join a carpool when commuting to work to save gas and car maintenance. Instead of buying coffee and lunch to go, make them at home. Cook your dinner at home instead of dining out. Quit if you're a tobacco user. These may seem to be small but if you add up your savings on them, you'll be amazed at how much you can have.

Apply for credit only if you have no other choice. Make it your last option and exhaust all possible means to increase your income while reducing your expenses. It will never be easy, or at least the first time you do it. But it will be as soon as you make it a way of life. You will enjoy a sense of accomplishment when you're able to meet all your needs with your present resources. Besides, you will be sparing yourself of worries about the additional monthly payment if you were to obtain a personal loan.




See more on: - Finance Articles - Loans, Credit and Mortgage Articles




© Startpage Ireland 2004 - 2018