Finding ways to close the gap in finances

We all need a little help from time to time meeting all our expenses.

07:54 22 September 2013

Monthly funds don’t always cover all your expenses. There are also times when an unexpected financial expense makes even normal bill paying nearly impossible without a little help. When these things happen there are a few options people might have available. Here are a few of those options:

• Social fund—some people might qualify to obtain money from the social fund that can help get them over the financial hurdle in their way. There are certain circumstances and requirements, but it’s worth checking into if you are having financial difficulty.

   

• Various loans—there are different types of loans that you might be able to obtain when you are experiencing financial difficulty. A secured loan is money loaned against a particular asset like a vehicle, home, or other asset. Unsecured loans have higher interest rates and amount may depend on your credit rating. Credit unions may be able to provide loans at lower interest rates if you already have an account in good standing. Alternatively, payday loans are available, which are forms of unsecured loans with minimal paperwork and exorbitant interest rates. Always check your other sources before option for payday loans.

 

• Banking overdrafts—overdraft fees are one of the ways that you can obtain the money you need. There are two different types of overdraft fees: authorised and unauthorised. Authorised overdraft fees usually are treated like a short-term loan with a fixed interest rate that you pay back when you get your money. Unauthorised overdrafts typically incur a fee, which may vary in amount based upon your particular bank. If you have multiple things that will be causing overdrafts, each individual item may incur a separate fee. It’s important to know if your bank can do authorised overdrafts instead of unauthorised. Depending upon the situation, it might work best for you to go with an overdraft instead of some other types of loans.