September 22nd, 2021 | Updated on June 30th, 2022
An estimated 40% of Canadians’ bank accounts cannot handle a financial emergency. This leaves them in a rather precarious situation should a financial issue crop up unexpectedly.
With no savings to pull from, most people without savings are left with one other viable alternative: borrowing.
What are the options you have on borrowing? Here are four sources you can borrow money from.
1. Payday Loans
If you do not want to ask help, you can get an online payday loan in Saskatchewan.
Payday loans are loans you borrow during the month, and you repay once your salary checks in at the end of the month. The lender will not ask for collateral.
Instead, they will get your employment details because your salary essentially serves as collateral. Good lenders advance the cash writing very short timelines, some as little as 30 minutes.
This is provided that you provide all the required documentation for loan processing.
2. Friends And Family
Another way is to ask friends and family if they can advance you a quick loan when needed, based on your relationship with them.
One of the key advantages of borrowing from your circle is that they are unlikely to charge you interest on the cash borrowed. As you know, interest increases the amount you have to pay back, which increases the cost of the credit facility.
Always be sure to repay the money as agreed, as it would be unfortunate that you lose a good friend or dent family ties due to non-payment.
3. Pawn Loans
Pawn loans are a simplified version of loans with collateral. Here, you identify a lender and take an asset of value to them.
The lender will keep the item and advance the cash. You will then have a repayment agreement with them.
Once you clear the payments, the lender gives back the collateral item. The most common items used as collateral include smartphones, electronics, and jewelry.
If you fail to make payments and are uncommunicative, the lender reserves the right to sell the item and recover their money.
4. Peer To Peer Lending Platforms
Peer-to-peer lending platforms are slowly gaining popularity in Canada.
These are online sites with borrowers and individual lenders. These two parties are linked on an online platform, where lenders lend cash as an investment option.
As a borrower, you will need to log in, create a profile and make a loan request. These are usually processed quickly, and you can get your cash within hours.
Emergencies are synonymous with life. This means you will find yourself borrowing from time to time. When you find yourself in this position, be sure to evaluate all your options closely and pick the best, most affordable option.