Emergencies are unfortunately an uncommon occurrence, and if statistics are reliable, most Americans have trouble meeting their obligations when they run into emergencies. There are many options when it comes to coming up with money in a pinch. Here are a few that can help you stay on your feet when the unexpected happens.
An emergency expense can lead to the need for getting a personal loan fast. These loans can come from your local bank, credit union, or quick installment loans online through qualified lenders. Regardless of where the loans come from, they usually have relatively short terms. These are a great option for coming up with a bit of cash that can be used to pay off emergency debts. There is a drawback for using this option for getting money in a pinch in that these loans require borrowers to pay a relatively higher interest rate compared to other loan products.
Home Equity Lines Of Credit
Another option for dealing with unexpected expenses and getting access to money in a pinch is a home equity line of credit. These lines of credit can usually be paid off over a longer term than personal loans, and they’ll usually come with a lower interest rate. The biggest downsides for utilizing home equity lines of interest are the facts that they can have variable interest rates that can make the bill higher over time and that they add to the borrower’s cost of housing.
If you have access to a credit card, you have access to funds in a pinch. You can actually pay for the bill with the credit card if the vendor accepts it. If not, most credit cards allow for cardholders to take out a cash advance. These usually require a borrower to go into a bank and get access to the funds. Credit card interest rates are among the highest in the lending industry because there is really nothing to back up the loan. Additionally, credit card debt that comes from cash advances begins to accrue interest immediately. This is different from the treatment of purchases, which have a grace period and charge no interest unless the statement balance is not paid off by the due date.
Sell Some Stuff
Most people have quite a bit of stuff in their homes. Many of these things get little, if any, use during the course of a year. If you have some unused items around the house, you can sell them in an online marketplace or in a garage sale to come up with some needed cash in the case of an emergency. Additionally, selling valuables is a possibility. You could take them to a pawn shop. These shops will give you cash and require the valuables as collateral. If you pay off the debt to the shop in a timely fashion, you can get your goods back. If not, the downside of using a pawn shop is the fact that you might lose your valuables.
While it’s never ideal to have an emergency, it’s usually possible to come up with the money that you need in all but the most expensive situations. Whether you decide to sell some of your possessions, take out a loan or use a credit card, these emergency cash options will likely have lead to a bit of interest to a lender to get the money that you need. You will, however, be able to take care of the emergency expense over time.