Weighing up your borrowing options

Recently our car broke down, again, and unfortunately it could not be fixed. We had invested a great deal of money into the car over the years, infact we are still paying off the loan we took out to buy it in the first place, and yet with the engine completely broken, the car had to be scrapped. That left us in a really difficult situation where we had no car, no savings, and loan payments still needing to be paid. Thankfully my wonderful parents came to our rescue and offered to buy us a new car, for which we will be eternally grateful, and yet it got me thinking that, without my parents, what would we have done?

I started to think about how anyone copes in an emergency when they don’t have savings. I’m not talking about the luxuries like holidays and designer handbags, but just the day to day items such as a new boiler, home repairs, your means of travel or even just putting food on the table during a difficult financial month.

I asked a group of other parents how they manage financially and where do they turn when they need money fast.

My Mum is my saviour. I hate asking and It’s rare to do that but she knows I’ll always pay it back. She’s a dream! – Nicole

If we need money fast we use quick loans to tide us over until we find our feet again. Sarah

My husband is about to get a loan for a new van and we’ve been using comparison sites to find the best deals.Laura

We sell things through eBay or at CEX. – Lucy

We cut out all luxuries and use that money for the essentials. If we have to eat pasta all week and downgrade our Sky subscription, so be it! – Anna

We use our credit cards but pay them off as soon as we can do we don’t get into debt. – Lynsey

I invested a lot of money into my designer handbag collection my 20’s so when the need arises, I sell one! The good thing is I always end up getting more money for them than I paid as they are ‘classic’ or vintage now! – Becci

Some parents like Nige, say that his parents taught him if you really want to buy something you should save until you have the money for it, and that is a lesson I would also instil in my own children. That said, although I hope in the future we will be able to help our children out financially in the same way that my parents have helped us, if that isn’t the case, it’s reassuring to know that there are options out there. Be that that the “bank of Grandad” as Victoria told me, or using loans and credit cards. Having that security to fall back on is so important!

 

 

 

 

 

 

 

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22 Comments

  1. June 27, 2017 / 9:24 am

    Interesting post this. I ALWAYS avoid borrowing unless it is a last resort. I’d rather make the money which can always be done easily online these days than have to get money from elsewhere!

    • Laura Dove
      June 28, 2017 / 6:54 pm

      I agree, but making enough money for a car or a new boiler doesn’t happen over night. We avoid borrowing where possible, it’s hard though! xx

  2. June 27, 2017 / 9:52 am

    Hi, interesting post thank goodness for mum and dad. Interesting to see what others would do. I wish I had expensive bags from my 20’s to sell.

    • Laura Dove
      June 28, 2017 / 6:53 pm

      Haha me too! I missed a trick there! xx

  3. June 27, 2017 / 1:30 pm

    I avoid borrowing as much as possible – I hate being in debt & always try to make sure I save for something I want. However a big amount of money e.g. a car is a whole different story!! x

    • Laura Dove
      June 28, 2017 / 6:52 pm

      I know, cars are HARD WORK!! I am so grateful to my lovely parents! xx

  4. Michelle Murray
    June 27, 2017 / 5:36 pm

    I am not one for borrowing money as I don’t like debt. If I can’t afford it I don’t buy it.

    • Laura Dove
      June 28, 2017 / 6:51 pm

      We are like that to a certain extent but when it’s our boiler system or our only means of transport, it’s good to have options. xx

  5. June 27, 2017 / 7:07 pm

    I don’t like to borrow and will do whatever I can to avoid it.

    • Laura Dove
      June 28, 2017 / 6:50 pm

      It’s hard sometimes when there is no other option, we try to be sensible but when the boiler breaks, or the car dies, it’s hard without savings! xx

  6. June 28, 2017 / 11:37 am

    I am so glad we aren’t the only ones! For us it’s random vet bills, we have insurance but the excess is about £100 so you end up just not bothering. We had to borrow from my parents sometimes but I don’t know how some people do it!?

    • Laura Dove
      June 28, 2017 / 6:46 pm

      Nor me, it’s so hard to have savings, especially as parents! xx

  7. June 28, 2017 / 7:59 pm

    We have to go to hubbys Mum, she always says she would prefer us to, and not take out a loan.

    • Laura Dove
      June 29, 2017 / 9:08 am

      Yes my parents say the same too. I’m grateful we have that option. xx

  8. June 28, 2017 / 8:17 pm

    We’ve borrowed from mum and dad occasionally, but like a loan I make sure we pay it back and quickly. I hope financially I’ll be able to help my children out too. How lovely of them to get you the car 🙂

    • Laura Dove
      June 29, 2017 / 9:08 am

      It was so kind of them, we are very lucky. xx

  9. June 29, 2017 / 7:28 pm

    The only things my folks do is borrow off family and friends never lenders. Thankfully they haven’t been in the position too many times, however our oven is just broke so they need to facebay some items to raise some cash!

    • Laura Dove
      June 29, 2017 / 7:58 pm

      Ahh it’s so hard when something big breaks, I wish that we had savings! xx

  10. June 30, 2017 / 12:45 pm

    We don’t borrow and it was my mum that came to my rescue when my car blew up last year. Paying her back very slowly now)

    • Laura Dove
      June 30, 2017 / 3:19 pm

      I feel your pain. Cars are SO expensive! xx

  11. July 2, 2017 / 12:21 pm

    I hate borrowing, so instead of doing thnat I would work a little extra harder!

    • Laura Dove
      July 2, 2017 / 6:40 pm

      That’s always a better option isn’t it? xx

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