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Finance: The best emergency loan

Sometimes in life, a real money emergency does pop up. It might be the car has broken down and needs a new part, the house is flooded, the fridge is broken, or those U2 tickets just cost a lot more than you thought they would. Whatever the reason is, at least once or twice in your adult, working life, you will come up against the need for some cash and quickly.

Like most problems of our modern age, there is not one, but many solutions and there are not one but many companies telling you they have it solved. Let’s say you have decided to go with a firm called “fast loans,” they have ads on tv, a helpful website, so at least they are legal. What you need to know in the UK, there is no legal limit on the interest rate of a roll-over loan and thus the rate could be 1000% and still “legal,” if the consumer is made well aware of this.

Option one – Payday loan:

Very simply. The company will look at your bank details and payslips, determine what you earn as a wage every two weeks and “forward” you a portion of that. You will also pay a fee for administration and then the interest, which will be very high. This is for employees only, not self-employed people. It has compound interest, evaluated weekly.

Nuts and bolts – £1000 paid in full in two weeks:

They charge 15%, and have a £50 admin fee, you’ll pay: £1338 (£338)

Option two – Cash advance:

The Cash advance is simply a high-interest loan. In banking, it would be called an “unsecured” loan as they are giving you the money based on nothing, but they know who you are. Unlike a “secured” loan they can’t take the security back if you default, they can’t gain money from the security; thus, the cost is a lot higher. Just compare your credit card to your mortgage. This is compound interest, calculated weekly.

Nuts and Bolts – £1000 paid in full in two weeks:

If you borrow £1000, on a rate of 17% and £100 admin fee, you’d be looking at, £1405, (£405)

Option three – Secured loan:

A pawnbroking loan is a secured loan and unlike the others where you are begging someone for money. Here you enter as a partner with something of value. Many people invest in a Rolex or a luxury watch and do so for this very reason, they know it is excellent for a rainy day. Also, unlike a car or a smartphone, a Rolex is a more likely to increase in value. A London pawnbroker, like Suttons and Robertsons, can offer same day loan service on antique items. You can walk in with your Rolex and walk out with the money. They offer compound interest, calculated monthly.

Nuts and Bolts – $1000 paid in full in one month:

This is a loan, and lent, you get your item back when you come back and pay the loan off.

If you lend £1000, on a rate of 6% and £0 admin fee, you’d be looking at, £1060, (£60)


As you can see quite clearly a secured loan is much better for your pocket than an unsecured loan, as there is much less risk to the lender, and that is what they charge for, risk not the service. Suttons and Robertsons have a great website, where you can access their loan calculator and offers, new clients get the first-month interest free. As mentioned, they provide same day pawnbroking loan service on luxury and antique items, with loans up to £20,000 pounds usually within an hour.

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