If you are already neck deep in debt, the conventional wisdom is that you should not borrow more. Indeed, the ideal situation for you will be to take steps to reduce your debt, not increase it even more. However, this is not the situation most debtors find themselves in. Even if you are deep in debt, you may need money in a hurry for emergencies or business purposes. Some debtors may also need to borrow to pay back old loans without having to default on them.
When you are in debt, your borrowing options will be severely limited. Conventional lending institutions like banks are very unlikely to allow you to borrow more money. You will find yourself cut off from the typical approaches to borrow a significant amount in a short period of time. You may not have any assets, like your home, to leverage against for a secured loan either. If you find yourself in this situation, here are several ideas on how you can borrow money:
Consider a Second Mortgage
Even if you haven’t completely paid off the mortgage for your house, you can still use it as leverage to borrow money. This method of borrowing is known as obtaining a second mortgage. Banks will allow you a second mortgage depending on your current financial situation. Severe credit card debts will not keep you from qualifying for a second mortgage. However, if you are behind on your original mortgage payments, then the odds will be against you. Regardless, you should contact your original mortgage provider and consider your option. You can do research on your own as well, such as search online for Mississauga second mortgage.
Pawn Valuables
This may not be the best scenario you want to be in. Even if you don’t have major unmovable assets to borrow against, you can still try movable assets, like jewelry. Pawning is a good way to get small amounts of cash in a jiffy. The advantage here is that you can always let the items go if you can’t come up with the money on time, or don’t want to. You can pawn jewelry, antiques, or even your car. The latter is called vehicle loans, but they are not recommended if you need a car to get to work.
Think about Bad Credit Loans
Is your credit score horrifyingly low? Then you can consider bad credit loans, such as poor credit mortgage in London, Ontario. These loans are provided to people who are already in severe debt. Your credit report won’t be viciously scrutinized by these lenders. Beware, however, of sky-high interest rates.
Ask Friends and Family for a Loan
Your best option at the moment will be to ask, or beg, friends and family for the money you need. You will have to pay them back, but they will probably not charge you an interest rate like a bank or a professional lender.
No matter how hard the times are right now financially, you can always come out of the situation you are in. If you are intending to borrow again, make sure you do so responsibly.
