If you need emergency cash, there’s an array of options to choose from. For example, you can ask friends and family, take out big rig title loans, or even get a payday loan.
However, how do you know what option is right for you? This can be tricky – after all, you don’t want to pay too much for the money you need just because you are in a jam. Don’t worry. There are several options you should consider that will help you cover emergency or unplanned expenses without causing a financial hardship.
How to raise cash quickly
A Short-Term Bank Loan
Before you rule it out, consider going to your bank or credit-union to find out if you can secure a short-term loan. There are some banks that even provide collateral loans to a borrower with less-than-perfect credit. If you are employed, you can even use your vehicle as collateral for better interest rates on a bank loan.
An Advance on Your Credit Card
If you have a credit card or a line of credit, and you can repay money borrowed in a few weeks, you may be able to take out an advance on the credit card. Keep in mind though, if you can’t pay the balance off before it cycles through, you may face steep interest charges and fees.
A Peer-to-Peer Loan
Since a peer-to-peer loan is funded by investors, rather than banks, the approval rate for a loan is much higher. Even better, the interest rates are lower, usually not exceeding the 30 percent mark.
What’s interesting about a peer-to-peer loan is that the minimum amount of the loan is often higher than other loans you can get from various vendors. Since this is true, make sure you don’t borrow more than you actually need. Another good thing about these loans is that you can prepay them without any penalties or additional fees.
Ask for Help from Friends or Family Members
In many situations, your friends and family members may be willing to help you with a tough financial issue. In a loan situation, make sure you discuss interest and a repayment plan, so there are no hurt feelings.
It’s not a good idea to borrow from friends or family members if you don’t have a job or if you aren’t sure how you will repay them. This can hurt relationships significantly.
Here is how to overcome a financial hardship
Get Another Job
If it is possible, you can supplement your income by getting another job. Some employers are going to hire people on a short-term basis. If you take the initiative and look for an additional source of work and income, you are likely going to find a viable option.
Consider Reaching Out to Charities and Social Services
The welfare office in your state, which is often called a general relief office, provides some people with emergency cash assistance if you qualify. You may also be able to get food stamps, along with reduced cost or even free childcare or phone and internet services.
There are also religious groups and churches that offer food to needy individuals, along with housing, job referrals, and access to education. If you are on probation or parole, there are all sorts of resources available to help you get on your feet, which you can get from your supervising officer.
Getting the Cash You Need, When You Need It
As you can see, there are several options to choose from if you need an emergency source of cash. Be sure to keep the information here in mind to know what options you have. This will help you get the money you need, without having to wait.