If you need cash to make an investment, buy an expensive product, or take care of a financial emergency, you might be contemplating the idea of getting a loan. However, when it comes to personal loans most people limit themselves to either applying at their banks if they have good credit or going to a payday lender if they have poor credit.
While your bank might give you a personal loan or line of credit, it may take some time for the loan to be approved. Alternatively, if you apply for a payday loan, all you need is to prove that you have a job. Your credit doesn’t matter. Since they are taking a small risk, they will only offer you a few hundred dollars and charge you a higher-than-average rate of interest. If you can’t pay back the entire loan with your next paycheck and keep on revolving the loan, you will struggle to catch up. In short, both these common types of loans are fraught with problems.
So, what’s the solution? Here is a two-step approach: first, get the money you need; and second, find a way to pay it off quickly so that you don’t have to dip into your weekly or biweekly paycheck to repay the loan.
How to Get a Loan Quickly
First, focus on getting the money you need fast even if you have poor credit. When you apply for online installment loans from a lender who offers an alternative option to payday lending, you can get amounts up to $1250. There are three advantages to this option: one, repayment is flexible and you can repay it in installments; two, funding is fast; and three, all you need to be eligible is a job or a regular source of income, an active checking account, and a social security number.
How to Pay off Your Loan Fast
Second, while you may have resolved your financial needs, here are two additional steps you should consider taking as a follow up to make it easier to repay off the loan.
- Declutter your house.
Although you may not realize it, there are probably numerous things around your house that you no longer want or need. In fact, your closets and garage are probably filled with things in mint condition: books, self-improvement courses on CDs or DVDs, handyman tools, exercise equipment, and so on. Why not sell them? You will not only have a neater house but you’ll also make some money.
You can sell collectibles at online auction sites and bulky items at online classified websites. All you have to do is take some crisp pictures with your smartphone, send them to these websites, and add some clear descriptions.
Another alternative is to have a garage sale. However, you will not be able to get as much because people who frequent garage sales usually have a bargain-hunter mentality. Moreover, many people go to garage sales, find stuff in good, and then resell them at online auction sites at a much higher markup.
- Start a side hustle.
When it comes to side hustles, most people are stymied by two issues. One issue is that they don’t have enough time since they spend most of their day at a regular job. Another issue is that they don’t have a clear idea of what type of work is available.
The truth is that both these issues are easy to resolve. If you have a few technical skills and don’t have enough time, then do a side-hustle online. You can, for example, go on job sites and look for freelance work.
There is a huge demand for people with writing skills, graphics skills, video making skills, or coding skills. If you have any of these skills, you can find plenty of jobs. If you have the time but don’t have any technical skills that you could trade online, then you can do a side-hustle in the real world. All you have to do to get some ideas is start looking for blog posts that provide a huge list of side hustles.
In closing, when it comes to getting a personal loan, look beyond obvious solutions. There are many alternative lenders who can give you the money you need on reasonable terms. Then, once you’ve got the money you need, think about ways to pay the loan back fast. This will make it easier to repay the loan quickly and it will build goodwill with the lender should you need a loan in the future.