One of the main reasons to create an emergency fund is so that you’ll have liquid money should there be a need to take care of cash in an emergency. But unfortunately, not everyone has the luxury to save up money before an emergency occurs.
That is why it’s important to know how to get cash quickly when there is no other choice. Here are a few solutions that you can look into when you’re in a bind:
Solution #1 Cash advance on your credit card
You can get a cash advance on your credit card if you need cash. All you need to do is call your credit card company and request that they put the amount you need on hold, then withdraw it at an ATM.
But keep in mind that this is a very expensive way to borrow money. With the average credit card APR being at 16.13%, you can expect exorbitant fees of around 5-10% just to get the money, plus interest if you don’t pay on time.
Solution #2 Borrow money from a friend or family member
If you have someone close to you who’s willing to lend you money, this is one of the best options out there. But remember that you need to repay them on time, or else it’s likely they won’t be willing to help you again in the future.
Also, while it might be simple to get the money, you need to make sure that both of you are on the same page about when and how much you will borrow. This way, there won’t be any surprises down the road.
Solution #3 Sell some of your belongings
Instead of borrowing money, you could sell some of your stuff to get emergency cash. You can sell one of your gadgets or even some clothes that you don’t wear anymore. This could also be the time to let go of some of your collections, especially if a buyer is willing to take them off your hands for a handsome price.
But you need to be careful when selling your belongings because not all buyers are trustworthy. If you’re wary about the person who is interested in buying your stuff, it’s better to be safe than sorry. So, make sure to do your research and make sure that the buyer is reliable before you sell off any of your possessions.
Solution #4 Look for available loans and grants
There are many types of loans and grants available, so you just need to find the one that will work for your particular situation. This can include a car title loan, wherein you will borrow money based on the vehicle that you have. The loan amount will then directly depend on your car’s value, so it would be easier to get the money you need in a short amount of time.
Another loan option is to contact your local government agency, which could offer you grants that are specifically designed to help people in emergencies. But make sure to act quickly because the deadline for these grants will vary depending on which agency you’re applying to.
Solution #5 Consider a quick cash advance
While this is usually a last resort, it can help you get the money you need in an emergency. Consider payday loan companies, which can instantly give you cash in exchange for a post-dated check. Usually, the longer you take to pay the loan back, the more you’ll have to pay in fees.
So, be sure to pay it back as soon as possible so that you won’t have to deal with the high-interest rates of payday loans. But on the off chance that you don’t have a choice, then payday loans are one of the simplest ways to get cash quickly.
Solution #6 Apply for a traditional loan from a bank
Your local bank will always have options available if you’re looking to borrow money. They may take some time, but it’s still one of the more reliable ways to get the cash that you need. If you’re not sure which bank branch will offer you the best deal, then ask your friends and family if they can recommend one.
Another tactic is to compare different loan options from various banks in the area. By doing so, you will be able to get the most competitive interest rates and fees on your loan, which will save you some money in the long run.
These are a few quick and easy ways that you can use to get cash in an emergency. Some of these options are more expensive than others, which is why you should do your best to weigh their pros and cons carefully. That way, you won’t have any regrets about your decision later on.