Like everyone else, you have probably faced a few emergencies in your life that always get you off guard. This can be quite stressful, especially when you are financially unstable and don’t have any savings. You need somewhere you can get quick emergency funds in such times. Unfortunately, many people don’t have any idea of such places, which is why we made this article. In today’s post, we will show you some of the best emergency funding options you should consider the next time you are in a fix.
Ask Relatives and Friends for Help
Family and friends are usually the first people who come to mind when you are in an emergency and trying to raise some cash. Since they are the closest people to you, they will probably be happy to help, especially if they hear that you’re in a situation. However, despite your close relationship, it is still crucial that you clearly explain your situation and why you need the money. Also, don’t forget to ask respectfully and state when you think you might refund the money. It is also important to understand that some of your friends or family might not have money at that time, so don’t take it personally since you reached out randomly anyway.
Take A Payday Loan
Payday loans are an efficient way of getting emergency funds as they allow you to take a short-term loan and refund on your next paycheck. These loans usually use your income to determine how much money you qualify for. They are processed within a day or two and don’t ask for collateral, making them great when you really need quick money and don’t have anything to use as collateral. However, note that you will probably be expected to pay the loan in whole and not in installments. Plus, the interest rate might be a bit higher, so ensure you check out different lenders to help you get a comfortable rate. You can check out payday loans from Payday Loans Online UK and see if they have something for you.
Take a Title Loan
Getting a title loan from a lending institution is another major and common source of emergency funds. For this, you need to use property, such as your car, as collateral. The conditions for these loans usually vary with the lender, but most are processed fast. They also allow you to continue using whatever property you placed as collateral as you repay the loan. Plus, they are flexible and don’t burden you as they give you enough time to repay the money.
Use a Cash Advance
If you have a credit card, you can easily get a cash advance provided you are within your allowed range. However, this option might not work for you if you need a huge amount of money as the highest cash advance is determined by your credit score and the limit set by your credit card company. Also, note that a cash advance from a credit card usually accrues interest very fast, which can quickly increase the total amount you owe. To be on the safe side, make sure to take care of the emergency and then repay the cash as soon as possible.
Borrow from an Investment
If you have saved some money in an investment, then you could withdraw the amount you need, then return it later. For instance, you can withdraw money from your retirement fund if you qualify for a 401(k) Hardship Withdrawal without having to take loans. Another option is filing for partial reimbursement for a Health Savings Account that you have not used for a while. However, remember that taking money from some investments might attract a penalty depending on the amount you want.
Some investment plans can also allow you to borrow the money you need instead of withdrawing from your investment. This acts as a loan and might be a better option if you are sure you can repay soon enough.
Sell Some Valuables
Selling some valuables can also help you get quick cash, especially if it is something made of diamond or gold. Due to their high value, you will likely get a buyer fast, hence getting the money you need to settle the emergency. Other things you can sell easily include the latest electronics such as game consoles, tablets, laptops, phones and TVs. For the best results, run an ad on different social media platforms to help reach a big audience or search for the right places.
Since emergencies are pretty inevitable in everyday life, you need to know the different ways you can quickly resolve them. This article has discussed some funding options that you can easily check out today. So, make sure to keep them in mind because you might need them one day.
Interesting Related Article: “Best Personal Finance Tips During COVID-19“