It is very difficult to get a loan nowadays. Banks have restricted to lend money to people with bad credit reports. This is a result of the financial crisis. Even many people with good credit scores in the beginning of the financial crisis are meanwhile in trouble. They might have lost their job due to the layoffs of masses of people. They might have lost a comfortable side income besides their main job and their income does not cover longer their monthly expenses. Small business owners struggle to survive and need money in order to gap financial straits.

There might be good reasons to need money quickly. Even people who lead a modest life can suffer serious financial problems. The heating or the plumbing of the home needs urgent repair. The car crashed down and needs to be replaced in order to go to work. Children need school equipment, e.g. a new computer for their homework. The dentist bill has to be paid.

The first and best advice is always to work out a budget with the monthly income and expenses and to exercise strict financial discipline. It is better to save the money for unexpected, urgent expenses than to apply for a loan. All these good advices are helpless for the working poor or for people who have lost their job and need to care for a family.

There are solutions for people with a bad credit score:

Government Grants for US residents

Even people with bad credits have access to government grants in the US. It is possible to apply for different kinds of useful government grants: home repair, school supplies, medical bills, public transportation, tutoring or teaching, general living expenses. A government grant could be helpful in order to get assistance to consolidate the consumer debt situation. Several thousand Dollars can be available in a single case. No fees and interest rates need to be paid.

There are some interesting facts about government grants. More than 20 million US people get government grants every year. Six million people get money to go to college, 10 million people get free help and training for a better job. One million entrepreneurs receive money to start or expand a business and four million people get money to invest in real estate.

Pawnbrokers or pawnshops as an alternative for borrowers throughout the world

Pawnbrokers are the lenders of last resort for people with a bad credit reputation. Whoever fails to get a loan elsewhere finds a chance at a pawnbroker or pawnshop. Pawnbrokers can be found everywhere in the world. How does it work? Borrowers get cash quickly by selling the old merchandise or by using their valuables as collateral on a small loan. Once they repay their loan and interest, the collateral will be returned. However, those who borrow money from a local pawnshop should be aware that if the loan is not repaid by the specified time, the pawnbroker has the right to keep the collateral. Pawnbrokers take usually consumer goods as electronics, jewelry, valuable music instruments or antique pieces of art as collateral for a loan. By the way, pawnshops are an interesting source to acquire a consumer good to a good bargain. Not all of the goods that have been given as collateral will be bought back.

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Liliane Waldner