Debt quick fixes to avoid when you’re desperate (and what to do instead) 

Tolu Frimpong suggests debt quick fixes to avoid when you are desperate and provides a step-by-step guide on what to do instead.

When your finances are overwhelmed, looking for quick debt fixes to ease the pressure is natural. But some of these solutions while tempting can backfire, leaving you with even more financial problems.

In today’s blog post, we’ll explore common ‘quick debt fixes’ that may seem helpful in the short term but can do more harm than good. 

1) Payday loans 

Payday loans promise fast cash, but they come with extremely high interest rates and short repayment periods, often trapping borrowers in a cycle of continuous debt. 

2) Balance transfers 

While transferring debt to a 0% interest card sounds appealing, balance transfers often come with fees and only delay the problem. If the promotional period ends before you pay off the balance, you’re back to high interest rates that are sometimes worse than before. 

3) Taking out new credit cards 

Opening new credit cards to manage existing debt creates more liabilities and often leads to more spending. It can also lower your credit score if you miss payments or accumulate more debt. 

4) Taking money from children’s piggy banks or savings accounts 

It may feel like an easy, harmless way to get money, but taking money from your children’s savings sets them back financially and can leave you with feelings of guilt, shame and regret. 

5) Borrowing money from family and friends 

Turning to loved ones for help might seem like the safest option, but money issues can strain relationships. If you’re unable to repay the loan on time, it can create tension and damage trust. 

6) Loan sharks and unlicensed lenders 

Desperation can push people toward illegal lenders who charge extreme interest rates and resort to intimidation or threats to collect payments.  

7) Overdrafting your bank account 

While using your overdraft can offer short-term relief, fees and interest charges add up quickly. This approach only deepens your financial trouble over time. 

8) Pawning valuable items 

Selling or pawning belongings may provide a quick cash injection, but you often get only a fraction of the value and risk losing items that are important to you. 

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What to do instead 

If you’re struggling with debt, there are healthier, more sustainable options that can help you regain control without putting your financial future at risk.  

1) Contact debt charities or nonprofit credit counseling services 

Organisations like StepChange, Citizens Advice, or the National Debtline offer free, professional advice and support for creating a plan to tackle your debt. 

2) Speak to your creditors early 

Many creditors are willing to negotiate lower payments or temporary interest freezes if you explain your financial difficulties early on. 

3) Arrange a payment plan 

Setting up a debt management plan through a credit counseling agency can consolidate your payments into one manageable monthly amount. 

4) Explore debt consolidation 

If you have multiple debts, consider consolidation loans from reputable lenders to simplify your payments and reduce interest rates. 

5) Access government assistance programs 

Depending on your location, emergency grants, hardship programs, or benefits may be available to help ease the burden. 

6) Sell unused items or take up freelance work 

Instead of pawning valuables, try selling unused items online or taking up freelance or part-time work to generate extra income. 

7) Seek emotional and financial support 

Dealing with debt can be emotionally draining, so it is essential to speak to family, friends, or mental health professionals to get the support you need as you work through your challenges. 

When you’re desperate to manage debt, it’s important to resist the urge to take shortcuts that could worsen your financial situation. While the quick fixes listed above may offer temporary relief, they often come with long-term consequences. 

Instead, focus on sustainable solutions like seeking professional help, negotiating with creditors, and creating a repayment plan that works for your situation. 

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