Personal loans for emergency financial situations

An unexpected bill can be a major stress.

Whether your car breaks down just when you can least afford it, or your cat requires pricey vet treatment, it can be hard to come up with a significant sum of money quickly in emergency situations.

In some cases, a personal loan can be a solution to help you get through.

At better finance™, we can offer fast approval times, flexible loan terms and transparent costs, which can sometimes help you out of a tricky financial situation.

Here’s what you might need to think about if you’re considering an emergency loan.

What do we mean by an emergency loan?

An emergency loan is money that you borrow to cover a financial emergency.

It’s not for an expense you knew was coming, although you can usually take out a loan for expected expenses, too, if needed, but for things that caught you out of the blue.

If you’re applying for an emergency loan through better finance™, it could be secured or unsecured and provides you with a lump sum to be paid back over a set period of time.

When you apply for a loan with us, the process happens online and by phone, and can be much faster than you might expect. In some cases, you might get an answer in a day or two, which may be a big help if you have a surprise bill looming.

We work with lenders who can offer fixed interest rates, there are no hidden fees, and we can help you if you need flexibility in your repayment terms.

Why might it be a good option?

If you’re in a bind, an emergency loan may be a preferable solution compared to using a credit card or a payday loan.

Credit cards generally have higher interest rates than personal loans, and can create a cycle where paying the minimum while you use the card means you never quite shake the debt.

Payday lenders usually have higher interest rates again.

When you take out a personal loan, the rate may well be lower than a credit card, and you also have a defined period in which to pay it off. At the end of that period, you know exactly when the loan for the unexpected cost will be repaid.

When might you need a personal loan for an emergency?

Car repairs

If something happens to your car, chances are you’ll want to be back on the road as soon as possible.

Whether it’s a breakdown or an accident that your insurance won’t cover, sometimes that can mean you need to find money urgently to cover the repairs.

A personal loan can be a way to get you back behind the wheel.

Home repairs

Even if you have insurance, you might sometimes have something happen at home that means you need to find a sum of money quickly.

Plumbing problems or electrical faults can be more expensive to fix than you expect. If there’s storm damage, you might have an insurance excess to cover.

Unexpected bills

There are all sorts of reasons why people find they urgently need more money than they had budgeted for. You might have to travel overseas to visit family, you might have to move house, or you might have an education-related expense pop up for yourself or a loved one.

A personal loan can be a way to cover this without adding extra stress and strain.

Debt consolidation in emergencies

If there is pressure on you, you might be looking at ways to cut down your life admin.

Debt consolidation could be one way you do this. It means you roll your debts into one new loan, with just one repayment being made each fortnight or month.

This means you only have one loan to worry about, and you may be able to get debt-free faster, or with less interest paid overall.

If you have any questions, we can help.

Advantages of a personal loan for emergency situations

Here are just a few of the reasons why a personal loan from better finance™ might make sense.

Speed and accessibility

• We can offer a fast online application and approval process.

• Funds can be transferred to you within 24 hours once you’re approved, which is handy in emergencies.

Transparent costs

• You won’t have any hidden fees or unexpected charges.

• Your interest rate will usually be fixed, so you will know what your repayments will be for the term of your loan.

Flexible loan terms

We can help you obtain a loan that is an appropriate fit for your financial situation.

Flexible use

We can help you obtain a personal loan that can help you cover the cost of anything from medical bills to home repairs.

How to apply for an emergency loan through better finance™

Step 1: Complete the online application

First, you’ll need to give details about what you want to borrow money for and information about your personal situation. This will usually mean things like providing bank statements, address, and ID details.

Step 2: Adviser consultation

A dedicated, expert financial adviser from better finance™'s team will give you personalised assistance to help you find a suitable loan.

Step 3: Loan approval and fund transfer

Once your loan is approved, you can sign your documents online and expect to receive the money within 24 hours.

Tips for using a personal loan for emergencies responsibly

As with any borrowing, a loan to get you through an emergency needs to be considered carefully.

Here are four things you can do to make sure it’s right for you.

• Be realistic about the urgency and necessity of your expense. Is it unavoidable? Is borrowing money to pay for it the right choice for you?

• Check better finance™’s loan repayment calculator to get a sense of how much your repayments might be. Lenders won’t lend more than they calculate you can afford, but you will also need to be comfortable with the level of repayments.

• Borrow only what you need to get you through your emergency.

• Keep on top of your repayments, and get in touch with us if your situation changes at any stage, so that you don’t encounter additional financial stress.

If you have any questions about personal loans, get in touch with the team at better finance™. We’re experts at lending and here to help with every step of the process.