Imagine going about your daily life and suddenly being confronted by an unexpected expense—a leaky roof or an urgent car repair—and having no savings to cover it.
If you find yourself in such a situation with no money to pay bills, know that you’re not alone. Up to a third (34%) of UK adults face this reality, having either no savings at all, or less than £1,000 in their savings account.
Saving isn’t just about putting money aside, your savings are a financial cushion that provides essential financial relief, helping you handle whatever life throws your way. Whether you’re saving for a new home, a car, or simply for unexpected expenses, every pound you save will bring you closer to your financial goals and increase your financial resilience.
However, with the rising cost of living, saving isn’t always easy and most people are finding it more difficult to set money aside. Luckily, there are options available that can help you overcome unexpected financial hurdles.
In this article, we’ll explore four ways to access emergency financial support when you have no savings, to get back on your feet.
1) Look into Universal Credit, Hardship and Disablement Payments
Universal Credit (UC) is a single monthly benefit payment that offers financial support to anyone on low income or who’s out of work. This payment is designed to cover basic living expenses and housing costs.
Hardship payments are temporary loans available to people receiving Universal Credit who are struggling to cover their basic needs after their payments have been stopped, typically because of a sanction. To apply for a hardship payment, you’ll need to submit evidence of why you’re in financial hardship and how you’re unable to meet your essential needs. These payments are not automatic, and you’ll need to apply and repay the amount over time.
If you’re living with a disability and have no savings, there’s a wide range of disability-related financial support available, including tax credits, payments, and grants.
These programs are designed to provide a financial safety net and help people through challenging times.
2) Local Welfare Assistance
Local welfare assistance programs are administered by local authorities and provide emergency financial assistance to people on low incomes or those with no savings. They help people on low-income maintain an independent life and overcome urgent financial crises.
Local welfare assistance schemes vary from location to location and the amount you receive is completely discretionary. Additionally, you cannot claim cash, but you may be offered vouchers for food, clothing, and even furniture.
Before beginning your application, ensure you have all the necessary information and documents. The local welfare assistance team will then review your application, and potentially contact you for further discussion and details, before making a final decision.
3) Consider Emergency Grants and Charities
Emergency grants help people during unforeseen crises or with unexpected expenses. As grants do not have to be repaid, they often offer a favourable alternative to a loan, if you’re eligible. Emergency grants are often smaller in value (typically up to £500) and are typically issued more quickly than financial support grants.
Many charities in the UK offer one-time grants to cover essential expenses, such as food, utilities, or rent. If you ever find that you have no money to pay bills, applying for a grant from a charity might help you pay for what you need.
Grants can be a lifeline during financial emergencies, especially when other options feel too far out of reach.
4) Emergency Loans
Emergency loans are a type of short-term loan that provides fast financial funding when you need to address an urgent or unexpected expense. For example, if your car breaks down but you don’t have the money to pay for the repairs until your next payday, you might require an emergency loan.
If you’re in a difficult situation and have no savings, and are not eligible or able to access other support, an emergency loan can be a helpful tool to address immediate expenses and manage your finances, as long as it’s used responsibly.
Due to their easy accessibility, emergency loans often come with high annual interest rates. As such, you need to consider if you can wait until your next payday and afford the repayments before taking out the loan.
The key to making the most of an emergency loan revolves around finding a reputable lender with rates and terms that match your needs.
Choose Salad Money for Fair and Affordable Personal Loans
Facing financial obstacles can be overwhelming, especially with no savings, but remember that there are still steps you can take to regain control of your finances.
At Salad Money, we recognise just how challenging it can be to face unexpected financial hurdles. That’s why we offer fair and affordable personal loans to provide financial support designed to lighten your financial burdens.
As a leading online lender, our ‘More Than Your Score’ loans help you gain access to financial support during difficult times. Instead of relying on just your credit score, we use an Open Banking system to gauge loan affordability, meaning you can access the funds you need, even if you have a poor credit score.
As an FCA-regulated company, we guarantee your data will remain safe and secure.
Apply for our personal loans now, and to read more blogs like this one, visit our blog page.
