Being in an emergency that needs cash is never a fun situation to be in. But when the surprise expenses show up in their ugly heads, you could easily find yourself in such a situation.
Having an emergency fund is the wisest way out, but for many that don’t have one, going on and on about the benefits of an emergency fund isn’t going to help much.
Instead, what is needed is options that you can get cash fast to address your emergency, an option that doesn’t leave you hurting in the long-term. For those that have bad credit, the latter is an uphill task. This doesn’t mean that you can’t access fast money; it means that you just might need to be careful with your decisions.
Here are four great ways you can get quick cash. None of these options are perfect with some, obviously, being riskier than others. But each offers unique solutions that could come in handy.
No matter the option you go for, make sure you are well familiar with the terms before signing up. You get to live with the consequences of your decisions, make wise ones.
Look, no one likes going asking for money from their friends and family. Even if they will be more than glad to loan you some cash, it feels really embarrassing. And if they are not so happy about it, it can feel a lot worse.
Still, this is probably the best option for quick cash. For one thing, family and friends are less likely to charge your interests. In essence, you get to borrow money for free. Plus, they are more likely to put up with an erratic repayment plan - something that most lenders don’t.
However, borrowing money from family and friends comes with some significant downsides. Messing up your credit is one thing but screwing such your close relationship with any of them is something else. Also, there are many friends and family that don’t have spare cash and if they do, loaning out is never on the table for them.
If you are going to go for this option, make sure the involved parties are clear on the loan terms. Some people do draw loan agreements so as both can have something in writing.
Shopping around for a payday can provide the cash you need. Payday loans are mostly advertised for people with bad credit. When you have bad credit, you are likely to miss out on doing business with many lenders. When they look at your credit score, they see the likelihood of default. But experts at iCash believe you should still get a loan in an emergency.
However, these loans do come with a higher interest. Make sure to consult the best lender for better rates.
There are two ways to go about this: You can out rightly sell your stuff, or pawn it with an option to get it back. These two options are fine and relatively easy ways of getting some quick cash, but they do have their risks and downsides.
You are probably planning to sell your stuff online. That means using eBay, Facebook, or one of the numerous apps. There is some lengthy process that goes into selling stuff online, the time you probably don’t have. Plus, meeting with internet strangers comes with some significant risks.
Also, you probably aren’t going to get the best deal for your stuff or near its worth. And if you need quick cash, waiting for the best deal isn’t convenient, right? Not getting your items worth also comes into play when pawning. In most cases, you have to pay interest to reclaim your item. While most pawn shops loan for a month, some extend for months, which means more interest.
These are loans designed for personal expenses. They are either backed by collateral or unsecured (issued through banks). The interest rate chargeable is dependent on the credit score. A good credit score gets lower rates.
Make sure you understand the fundamental differences between personal loans and payday loans. The best way to deal with an emergency is to already have a fund set aside. An emergency fund will give you a solution without charging any interest. But saving is hard for many. If you need quick cash, check out these solutions, and find the right one for you.