When to Consider Doorstep Loans
Just because a personal loan is accessible doesn’t mean you should avail it. As experts would suggest, unsecured personal loans such as doorstep loans which come with steep interest rate should be applied for with caution. In fact, it is ideal to consider it only as a last resort. That is, after you’ve exhausted other cheaper alternatives such as:
Compared with doorstep loans, credit cards actually charge cheaper interest rates. On average, APR for credit card debt is 38% making it a cheaper option than unsecured personal loans offered online or on the high street. If you still have balance on your credit card, take advantage of that by getting cash advance or using it to pay for whatever you need paid.
Another cheap way to borrow money is through credit unions. If you’re a member, chances are high that you can borrow a small sum of money at lower costs than what doorstep loan charges. Processing may not be as quick as doorstep loans but the payoff is with the cheaper interest rates.
Loans from Family and Friends
You can also try borrowing from family or friends. If it’s just a small sum, you might get lucky immediately. Loans from these people also means very small to no interest rate at all. Just one precaution though. Consider repaying your loan from family or friends as serious as you’re repaying a mainstream lender to avoid complications.
Peer-to-peer or P2P lending is another means that’s becoming increasingly popular to borrow small sums of money. The transaction, in this case, happens online and there are no intermediaries between the lender and the borrower. An individual or peer acts as the lender lending money from £100 up to £1,000 or more at an agreed interest rate that is usually lower than what doorstep loans charge.