Cash is not always there when we need it most. While it’s always helpful to have money stashed under the mattress, not everyone can afford that. You may not have savings to use during an emergency, which can put you in trouble. Here is what to do if you’re stuck and need money quickly. These ways will ensure you can fund what you need and get money in an emergency.
Take advantage of your savings
An emergency may be the right time to withdraw for a person with savings. If it’s between saving yourself a ton of interest or applying for a high-interest loan, it’s best to make a savings withdrawal. Get a loan from your retirement account. Dig into your RRSPs or retirement savings plans to withdraw money. If you have no other resources, this should be considered.
Ask for assistance
A friend or family member who trusts you may be willing to provide an interest-free loan. Be sure to write this agreement down. Never miss a payment. Treat your lender right by following through on your repayment commitments. Locally, you may have a charity, non-profit, or church to request financial assistance from. Non-profits offer many financial resources. They can assist with food, shelter, and direct financing for specific emergencies.
Obtain a new credit card
Add another credit card to your name if your credit is good to excellent. This can be tempting because it’s easy and fast. Just ensure you have a financing plan in place to avoid paying high interest indefinitely.
Take on odd jobs
Look for work today. Post an ad on classified sites. Post your willingness to do odd jobs on social media, such as Facebook Groups. Get your name out there regarding accepting jobs for cash paid instantly. If you have been with your employer for a long time, talk to them. You can request an advance on your paycheque. See if they will give you a portion of your next paycheck early.
Sell some of your belongings
Look around. You may have items sitting around collecting dust that you can quickly sell and turn into emergency money. It could be old electronics, merchandise and memorabilia, clothing, furniture, or similar materials or items.
Get a loan
Sometimes, alternative lenders can be your best option. These companies provide emergency loans in 24 hours or less. When you need money in an emergency and need it fast, go to a reputable loan service where the application process won’t be slow and long. Lenders specializing in emergency loans offer fast approvals, quick issuing of money, and a range of terms and amounts.
While you may want to seek out an emergency loan lender, you may find these fast-approval loans available at banks, credit unions, and similar financial institutions. You can also try other loans. A pawnshop loan is where you pawn an item for money and are provided with a window for repayment. If you cannot pay back your loan, however, the pawnshop can sell what you’ve pawned which results in you never getting that item returned.
Taking out a loan against your home equity
Use your home equity if you have any. You can borrow against it with a loan. While there are risks to using your home as collateral, it’s a way to obtain a large amount of money if necessary and sometimes quickly. Second mortgage loan options such as a home equity loan, a home equity line of credit, or mortgage refinancing are three common ways to tap into equity as a homeowner.
Take out a title loan if you own a vehicle
Title loans are types of secured loans that requires you to hand over the title to your vehicle as collateral in exchange for cash. Lenders often provide 25-50% of your car’s total value. This is a last resort as you risk losing your vehicle if you cannot pay.
Apply for a credit card cash advance
You may be able to take a credit card cash advance. The fee for a cash advance can be high and, if unpaid, will be charged indefinitely. However, for quick cash that you don’t need to apply for, so long as you can pay off the balance fairly quickly, taking a cash advance is a smart move.
Request a payment arrangement
Depending on what you are trying to fund in an emergency, ask if there is a payment arrangement option available. They may be willing to work with you to cover your costs.