An emergency has come up. You have to pay for unexpected car repairs, legal bills or medical bills. Often these bills can’t wait, such as when your boiler won’t get fixed until you pay the plumber for the replacement parts. You may not have an emergency fund, or your emergency fund may not be enough to cover the total cost. Now what? Here are 5 things you can do if you need to borrow money fast.
Determine If You Can Earn More Money
Find anything you can sell to raise cash. The internet makes it much easier to sell unwanted items. You could sign up to provide services like food delivery and rides. However, you may not have time to try to sell things or work part time to raise extra money.
Find Out if You Quality for a Cash Advance
Cash advances are one way to get cash quickly. You can pull cash from the credit card by using it like an ATM card at the nearest ATM. You could have the transaction processed by your bank, or you could arrange for the money to be deposited into your checking account.
This is only an option if you have a credit card with a credit limit high enough to cover the amount you want to advance. These transactions come with fees. Interest starts accruing on the advanced amount immediately, though you can pay it over time.
Consider Taking Out a Short-Term Loan
Short term loans like payday loans give you access to the money quickly. Note that you can easily find same day loans online, so you don’t have to visit a payday lender. These loans have fewer requirements than a traditional loan. The main concern they have is that you earn enough each pay check to repay the loan.
These loans are an option when you have maxed out credit cards or have a poor credit score. They do have higher interest rates than some other options. They often have a short repayment period. This may be a good option if you’re waiting for your next pay check or funds from a friend or family member that should arrive soon.
Determine If You Can Get a Personal Loan
Another option is a personal loan. These loans have lower interest rates and a higher maximum amount than most credit cards. However, these loans require good credit and can take days to get you your funds. On the flip side, you don’t have to pay the personal loan back as quickly as a short-term loan. Some lenders will loan you money secured by the title of your car or home, but now you risk losing these assets if you can’t make the payments. Yet the interest rate is lower because the loan is secured by a valuable asset.
Try to Extend Your Payments
Talk to your bill providers to ask for an extension of your due date. This gives you more time to raise money to pay the bill. You can also ask for a longer payment plan. This may make the payments fit within your current budget, though it will increase the total amount you pay over time. If you’re in dire need, ask for charitable assistance with utility and rent. Note that you can also seek assistance from charities to help pay these bills if you’ve lost your job or recently become disabled.
Emergencies are a fact of life, and we’re not always ready to handle the bills that accompany them. Understand your options so that you can find the right one for you.