Did you know that 25% of Americans have no emergency savings? Also, 33% of homeowners have under $500 saved for emergency home repairs, which is not nearly enough for most disasters!
It might’ve been hard to save up some money in recent times. But life doesn’t stop; bills still need to be paid and things can break down at any given moment.
What happens if you don’t have any money in your savings account? How can you pay off these necessities to make sure life goes on?
In this article, we’ll discuss some ways you can get some emergency cash so you can make ends meet!
Ask Family and Friends
It can feel embarrassing to ask your family and friends for some emergency cash, especially since you have to reveal your financial troubles. But know that your loved ones care about you and would probably do anything to ensure you’re ok!
The good news about borrowing from your social circle is there are usually no interest rates attached and repayment terms are much more flexible. In the best-case scenario, someone might even say forget about paying them back, just consider the cash a gift!
Of course, not all of us are lucky to have a good support network. Or maybe you just don’t want something like money to come between your treasured relationships.
In that case, here are some more options to consider when you need emergency money.
Apply for a Personal Loan
A personal loan is a fantastic choice if you have good credit. If so, then you should apply for an unsecured personal loan. This is where you don’t need to put down collateral to get money.
Otherwise, you’ll need to apply for a secured personal loan. This type of personal loan has lower APRs than unsecured ones because there’s a lower risk for the lender.
However, personal loans can take a little time to get approved. If you need money immediately and can’t afford to wait a few days or a week, you might have to resort to some of the other choices on this list.
Use a Credit Card Cash Advance
Most of us know that you can swipe a credit card to charge purchases and pay the actual amount at a later time. But did you know you can use it to get a cash advance as well?
To do so, just use your credit card at an ATM. Punch in the amount you want and you’ll get instant cash.
Do note that there are some caveats to getting cash in this way. First of all, there’s usually a pretty low limit, like $500 a day.
Also, the interest rates for cash advances are very high, and they’ll start accruing as soon as you withdraw cash. You’ll usually have to pay a processing fee as well.
To avoid a never-ending cycle of debt from this, make sure you can pay back the amount quickly!
Open a Line of Credit
Opening a line of credit isn’t taking out a loan. Instead, you get a credit line of a certain amount, and you can take out cash advances whenever you need it.
What’s great about opening a line of credit is it’s a very quick process. So if you need money fast, it’s a good option.
In most cases, you’ll need a good credit score. Also, you’ll need to be at least 18 years old, have a valid government ID, checking account, and a regular source of income. This assures the provider that you can pay back whatever you request cash.
Check Out Local Nonprofit Programs
Thankfully, there are often local nonprofit programs that are set up to help those who need help with emergency situations. They can help pay off things like utility bills and rent. They can also purchase some necessities you might need, like food and toiletries.
Once you’re back on your feet, make sure you remember to pay it forward! By giving back to these local nonprofits, you’ll be helping out someone who might be in your shoes someday.
Get a Payday Loan
Payday loans are a type of short-term loan where you can get money pretty much instantly. However, it should be your last resort because the APRs can be insanely high (we’re talking like 400%!).
In addition, to get a payday loan, you must be employed. This loan works by basically giving you an advance on your next paycheck. And when you get paid next, that amount goes toward repaying the payday loan.
In theory, your next paycheck should be enough to cover the entire amount, which means you’ll wash your hands of the entire debt. However, it often doesn’t work like this.
Because there’s a ridiculous APR tied to your payday loan, in many cases, the next paycheck doesn’t cover the full loan amount. So then you’ll need to take out another payday loan to pay that amount off, and so on and so forth.
Like with the credit card advance, you need to be absolutely sure you can make the entire repayment on time. Otherwise, you’ll be in more trouble than you were in the beginning.
Get Emergency Cash Fast
A sudden injury, breakdown of your car, or just regular bills can become a huge financial burden. Having access to emergency cash is a must, especially if you don’t have a lot of money saved up.
By turning to the methods we’ve suggested in this article, you’ll be able to source some cash fast in your most desperate times of need. It can mean the difference between putting food on the table or not!
Want to learn more about personal finance? Then take a look at our blog page now.
