by Shaheen Darr

Created on: May 06, 2008   Last Updated: May 16, 2010

When faced with financial problems, life can seem pretty dismal. Mortgage payments and other expenses are looming ahead and if you do not have savings to tide you over what can you do to raise cash quickly?

Look around for unwanted items lying around the house or in the attic and have a garage sale. Selling things on Ebay or other auction sites are also quick options. But always keep account of any ebay charges and do not forget to charge delivery and postage charges to your buyers. If you can cope without a car and it is possible to commute, try and sell it to raise additional cash to clear bills. This will save you paying out car insurance, its maintenance and petrol.

Look for temporary jobs around your area as they are much quicker to get than a full time position. Filling shelves or working as a check out assistant at any large grocery outlets can help bring in some money on a weekly basis. Take away eating places and restaurants are always looking for additional staff to cover shifts and so are businesses that requre telesales assistants to market their products or services. The advantage of these jobs lies in their flexible hours.

You can also ask family and friends for help. Parents who have a sum of money saved might agree to lend you the money without asking for a high interest rate in return. This is an attractive and a quicker option because you are not being tied up for years with a lender who might ask you to sell your house to meet their repayments in case of financial problems. Circle lending is a good option as parents and good friends are generally more lenient than conventional money lenders.

It is important to get in touch with the department of social security and inform them of your situation as soon as possible. This is helpful when you have young children who need looking after and instant money isn't available straight away. They will need full details of all the monthly outgoings you have and also sources of income you might have. You will also need to declare any savings you have before they start making fortnightly payments to you. This help will continue until you find a job and they will then have to be informed accordingly.

There are companies that offer solutions to your debt problems by giving lump sum loans which help you to consolidate all your existing debts into one lump sum. You pay off all your creditors and only pay out one smaller amount over a longer period. If it is a large amount being borrowed the company might ask for the loan to be tied up to your house as collateral. It then becomes imperative to continue making repayments if you do not want your home to be repossessed. Borrowing a little extra means you might be left with some extra money which will help towards day to day expenses and gives you that extra help you until you find another job.

Consolidation might not a suitable option if you have adverse credit history. Though there are some lenders who might still consider giving you the loan but at a much higher interest rate. This means that you will pay back a much larger amount after the term of the loan is completed.

Other options are longer term and may take a few months if not more before you see the money. You could decide to sell your house and repay all your debts but again this might take several months to sell depending on the housing market.

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