When you’re short of cash and can’t save up funds in time, taking out a loan can seem like the most convenient option. However, there are drawbacks to loans – not only do you have to pay back the money, but you’ll often have to pay interest to the lender on top of this. Being accepted for a loan can also be a struggle if you’ve already got debts and a low credit score.
All in all, loans aren’t always an ideal option. But what other ways are there to raise funds fast? Here are just a few alternatives to a conventional loan that most people overlook…
Sell unwanted possessions
Selling things you no longer need can be a great way to raise funds. This could include anything from old clothes to books to electronics – whatever is gathered dust in your home.
There are lots of places to sell these items. Many people sell items online using sites like Amazon, eBay, Gumtree and Facebook. You could also consider selling items to a second hand shop such as a jumble store, a vintage store or an antique shop. Flea markets and yard sales are other popular options.
Items may have to be of a certain condition in order to sell them to certain stores. When selling online, you can sell damaged goods but you’ll need to be honest about the condition. Items like broken electronics and non-working vehicles can sometimes be sold for parts or sold for scrap.
Take part in paid experiments
Colleges and research centres will often advertise paid experiments. These can be great opportunities to make some money. You may have to commit a little more time and effort to the most well-paid experiments. Be wary of paid experiments like drug-testing – whilst these may be the most generously paid, the health risks are something you’ll want to seriously consider.
Take up odd jobs online
There are lots of odd jobs that you can take up online to make some money fast. These include answering surveys, writing paid reviews and offering virtual skills as services such as web design or blogging. You can usually get paid within a month for these jobs (some sites may even pay the very next day).
Consider an equity release
If you own property, you could also consider an equity release (or a reverse mortgage as is it often referred to). This involves releasing any added value that the property has gained since you bought – this gets given to you as a loan that you only have to pay back when you sell your property. By searching online, you can find a mortgage lender that offers this service. If you’ve owned a property for a while, you may have access to a lot of money – however it’s worth remembering that you will have to pay this back when you sell up.
Access your 401k
It’s also possible to access your 401k early. This can be a great way to raise large amounts of money fast. Of course, this will mean that you have less money to live on in your retirement, so do be careful as to how much money you take out.
Extra (2 Quick Ways to make extra money)
We have probably all been in the position that we googled ‘how to make money fast’ and hoped that at the end of the search would be a magic button that simply said ‘click here’ and poof – we were rich. However, that is never going to happen, so in the meantime, if you are in need of some tips and tricks to make some quick (and legal) cash then look no further!
First, before you nose dive into taking out high-interest loans or anything similar take a look at a few of these options.
Take a Look Around
What don’t you use anymore? It is claimed that each household has around 4k worth of things that are completely saleable. That old coffee machine? Sell it. No been out on the bike for a while? Get cash for your motorcycle. Start by going room to room, and making a note of what you have. Many of us have piles and piles of clothes we don’t wear for one reason or another.
You could bag up old children’s clothes in size bundles and pop them on eBay. If you have some more slightly worn clothing, this is a great time to check out schemes that by old clothing and textiles by the weight. Book bundles and toy bundles also sell very well.
For more significant things like furniture, you could look at downsizing. Are you using an 8 seater table for a 4 people household? Downsize and create extra space and money by doing so. If you don’t have the time to wait for an eBay sale, then add your items on to local selling sites like facebook or craigslist.
Community groups are great places to look to sell items that are specifically for hobbies like fishing or sewing.
If you have a few spare hours a week, those hours could be turned into cash. And, you have the potential to make money pretty quickly by doing so. If you have a car you are probably at a bit more of an advantage but none the less you can offer out the following services:
- Laundry – washing, folding and ironing
- House Cleaning
- Washing Cars (inside and out)
- Walking dogs in the local area
- Gardening, mowing the lawns, trimming hedges and weeding
- Running errands to pick up or drop off
- Any DIY that you know you can do well
- Delivery Driving
Pop your name and number on local sites, your hourly rate and what you can do for people. If you have a little bit of time to wait you can do all of this via an app, if not then print flyers and hop to it.
You more than likely have a friend or relative that needs some help around the home, or around their business. This is a great way to do something good and ensure that you get the cash that you need.
You can sign up to some sites to do the delivery driving, or you could offer it to people you know. Just be sure to factor in the cost of your petrol.
PS Follow your guts when doing any type of jobs online or offline 🙂
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