Money problems are one of the leading causes of stress but, with the help of some nifty tools and financial products, you will be able to rest easy knowing your finances are on the right track.

With inflation on the constant rise, it’s no wonder that fellow Aussies are struggling to maintain the same standard of living. Money doesn’t seem to stretch far enough to make it through the month, calling for stricter budgeting and money management efforts.

This article will cover how a loan can help alleviate financial pressure as well as review the tools that can be used to ensure that you are borrowing the right amount of money to suit your budget and financial prospects.

Relieve some of the pressure

If you find yourself plagued by worries of your current financial situation then it’s time to consider some alternatives. With the help of a few simple financial products and better money management, you will find yourself on the road to a brighter financial future.

You do not need to be a financial savant to get your finances in order – all you need to know is where to go. Whether you need some slack on your monthly expenses or need some additional cash to spruce up your kitchen, there is a financial package that will make you smile. Below we take a look at some of the options that could help you get where you need to be.

Loans and credit options to help relieve financial pressure

Use credit cards as a safety net

If you are looking to cut some additional slack on your monthly finances then a great way to do this is by using a credit card. You will only need to repay the money if you use some of the credit available to you. So this makes for an excellent escape plan should you run into any unexpected expenses such as vehicle repairs or medical bills.

While credit cards come with high-interest rates it is possible to combat this. The best way is by paying the minimum repayment to keep the lender happy. It will take longer to repay the full amount this way but is the best option to keep your credit score high. Every month the borrowed money will gather interest and compound.

This is why it is best to make payments larger than the minimum repayment value to reduce the interest accrued and repay the amount faster. Credit cards are highly flexible and allow the user to have greater control over the finances than with other traditional loan options.

Balance transfer credit cards

If you have existing credit card debt and are being charged a high rate of interest, a possible solution would be to make use of a balance transfer credit card. These nifty financial tools will give you between 6 and 26 months to repay you credit card debts without being charged interest.

Personal loans that cover any need you may have

The majority of loan options that individuals can explore fall under the personal loan category and includes vehicle, student and renovation loans, among others.

What makes personal loans great is that they can be used to finance a variety of things. While certain loans can be restrictive in how borrowers are allowed to use the money, borrowers have free reign with personal loans.

If you are struggling to save to renovate the kitchen, take that vacation or repair your vehicle then a personal loan may be the answer you have been looking for. This is because personal loans are very borrower-orientated and they are also highly flexible.

This means that the borrower can decide on the amount, term and repayment schedule that suits their budget and preferences. Personal loans can be taken out for a longer term and may help to alleviate financial pressure and obtain the finance you need to do the things you have been putting off.

A few personal loan options to consider

  • Peer-to-peer lenders can offer Aussies personal loans with low interest rates and flexible terms provided that the borrower has a good or fair credit score.
  • For those that have poor credit, alternative lenders may be best as these lenders are more flexible when it comes to lending to those with a bad credit history.

Short-term loans for unexpected expenses

Short-term loans are similar to personal loans at the exception of their loan term, borrowing amounts and interest rates. While personal loans can classify under either secured or unsecured loans, short-term loans are mostly unsecured.

Short-term loans are excellent for borrowing small amounts of money for emergencies such as doctor’s bills, vehicle repairs or unexpected flight expenses. Even though they have higher interest rates than personal loans, they can be repaid faster due to their shorter loan terms, making them more affordable for smaller expenses.

Loans for people struggling with debt

Debt consolidation loans

If your current financial situation is the cause for your sleepless nights, then a debt consolidation loan can help you to get your finances back in order. Instead of repaying a variety of debts – credit cards, store cards and small loans, the borrower can repay all of their debts with a debt consolidation loan and then only have one payment to worry about.

This has the potential to reduce money wasted on monthly fees and interest accumulated. The borrower also gains more control over their financial situation.

A nudge in the right direction

Finances can be daunting for most of us but there are professionals and specialist tools designed to assist us to manage our finances. Sometimes all you need is a nudge in the right direction and loan calculators can provide you with the help you need.

Loan calculators are available on most lenders’ websites and allow you to find the ‘sweet spot’ for your finances. With the help of the calculator, you can determine the most affordable monthly repayment that will suit the borrowing amount that you need over the period that is most suitable to you.

If you prefer a more human approach, speaking with a loan consultant can also help push you in the right direction. Get on top of your finances and budget your way toward the financial future that you deserve.