The ongoing Covid-19 pandemic has reduced the income of many individuals throughout the UK. While there are efficient governmental loan schemes that are designed to help companies get through these troubled financial times, regular individuals do not have access to as many resources. This has pushed a large number of people to use their credit cards more often, take out payday advances, and even use personal loans for regular monthly expenses. These methods may work, but they can only be sustained for a short time before borrowers are forced to repay the money and find themselves in debt. Even if we are to ignore the danger of not being able to repay the loans, the regular use of credit cards and payday advances can cause serious damage to an individual’s credit rating.
In many ways, the best way to get through the reduced income caused by the pandemic is by finding other ways to earn money with a minimum amount of effort. For most individuals, employers have adopted a work-from-home policy, which has given them considerably more free time than before. This can open up a wide array of possibilities:
· Join a P2P Online Lending Platform
P2P online lending platforms are great for individuals who need to borrow money but do not have a good enough credit score or have had issues with the bank. This having been said, these P2P platforms can be used the other way around. Most websites allow new users to choose if they want to register as borrowers or lenders. If you have a bit of money saved up, it is possible to invest it by giving other individuals loans. Keep in mind that this will not produce a lot of money, however, it is a passive source of income, which means that the user is only required to create the account, deposit the money and the platform will do the rest. Furthermore, P2P online lending platforms have safeguards in place that are designed to protect lenders, which means that you will not lose your money.
· Start an Online Store
One of the most reliable ways to make money during the pandemic is through eCommerce. There are several platforms that allow users to create online stores for free and most of them also offer website builders that are easy to use. The secret to making money from a web store is finding a good target audience. Go online and look at what kind of items people are buying regularly. Then, simply find a manufacturer, create and send in your branding materials and this is where the difficult part ends. Whenever a client places an order, direct it to the manufacturer and ask them to send the product directly to the customer’s address. You can then use the money to pay the manufacturer and keep the rest, all without having to ever physically handle the products.
· Take Out Online Microloans
While they might not fall into the category of income, microloans can be certainly used to supplement the amount that you may be currently earning. There are several apps that give users the ability to borrow small amounts of money, usually between £10-£150, at relatively low interest rates. However, the money must be returned in a maximum of 30 days. Regardless of this, microloans can be powerful tools for those who want to use their credit cards as little as possible. This is because these applications do not report the transactions to credit registers, which means that they will not affect an individual’s credit rating.