Stressed! Anxious! Worried!
These unpleasant emotions affect your financial wellbeing. They can cause you to make poor decisions, turning a bad situation worse.
Sometimes the unexpected happens. You find yourself in a bind and need fast cash now!
When facing a financial hardship or challenge, your first step is to negotiate. Try and reduce the balance that you owe or get a second opinion on the work you need done.
Once the bill gets finalized, use your emergency fund to cover it. This account’s sole purpose is to help you weather these financial storms.
But, what do you do if there’s a big financial crisis and you need cash now?
Use your emergency fund to tide you over. It can help bridge the gap until you find extra money.
Then, use the list below as a guide to solve your financial problem. These options will help you get out of a cash crunch. So, you can bounce back and continue pursuing your financial goals!
Contact your creditors as soon as you realize there’s a problem. For most of them, this is a normal part of their business and they have programs available to assist you.
These companies may be able to reduce your interest rate, payments, or put your account in forbearance. But, you need to understand how these options can affect your credit score and financial future, too.
One of the best places to get fast cash is by looking for free money. This option won’t affect your budget or lifestyle either!
There are several organizations that can help you get out of a financial hardship, too. Try contacting community centers and local nonprofits. These organizations exist to assist you in a time of need.
The Los Angeles Times reports that American’s have over 300,000 items in our homes. This makes the odds very good that there are at least a few things you could sell and you won’t even notice they’re gone!
Most people experience lifestyle creep and have things they rarely use. These items spend the majority of their useful lives in a closet collecting dust. Yet, people still hold on to them just in case one day they may need them.
Many people have old furniture, clothing, and electronics around their home. Selling these items can generate some fast cash now!
Use sites like Gazelle, Decluttr, and eBay to reduce the amount of stuff you have. Or try selling locally on sites like Offer Up and Craigslist. You could always try having one of those old fashioned yard sales, too.
Most employees have deductions automatically taken out of their earned income. They pay taxes, insurance, and contribute to their nest egg before any money even hits their account.
One way to get some fast cash is to adjust the amount of money that’s taken out of your paycheck. You could lower your income tax withholding or reduce the amount that you contribute to your retirement account. Some companies will even buy out your unused vacation days!
Contact your HR department to find out which options are available to you.
These “fools golden handcuffs” aren’t usually something that I recommend for people in a jam. But, there are some instances where they do make sense.
Lendingtree has several credit cards that offer 0% APRs on new purchases. This reduced rate is only good for a limited time. So, make sure you can pay off the balance in full before the interest starts compounding.
Also, check your existing credit cards. Many have perks and accrue points, which you can redeem for fast cash!
In most of the country, the real estate market is hot. Houses are selling in minutes, over asking price, and sometimes are cash deals! This means that there’s probably equity in your home.
You can access it using a Home Equity Line of Credit (HELOC). This loan gets secured to your property and has low-interest rates. Most of them can be set up in a few weeks through your local bank or credit union.
If you don’t have a HELOC, you should consider getting one. Many lenders offer them with no closing costs. You can leave it open with a zero balance until you need to access it.
Peer to peer (P2P) lending is a service that matches lenders with borrowers. They help people get fast cash when they need it. Most companies allow you to apply online without even having your credit pulled!
The most popular P2P lending platform is Lending Club. Borrowers can apply, get approval, and have their loan proceeds in hours!
Reddit, also launched a social lending platform. It doesn’t follow traditional banking guidelines. Instead, it relies on the goodwill and faith of its users.
A personal loan is like a P2P loan. But, it comes from a bank or credit union. The lender checks your credit scores and collateral to determine the loan terms that they’re willing to offer.
Shop for personal loans using Credible. They make it easy to compare rates and fees. So, you can pick the one that’s right for you!
I don’t like recommending that people take money out of their retirement accounts. It reduces the power of compounding, which takes them longer to achieve their financial goals. Yet, sometimes it’s the best or only option.
The easiest accounts to pull money from are IRAs. You can borrow from a Traditional IRA once per year. The money won’t get taxed or penalized as long as it’s paid back within 60 days.
A Roth IRA is even better. It allows you to withdraw tax and penalty-free with no repayment required under some situations.
Borrowing from a 401K can be difficult. These plans are employer-sponsored and the withdrawals must go through their approval process.
In my experience, most employers have strict withdrawal rules. They only allow employees to take these funds out in a handful of situations. If yours gets approved, you’ll have 5 years to repay it. But, if you quit or lose your job, then you may have to repay the entire loan balance much sooner!
The final few options to get fast cash offer easy loan approvals, but come with serious repercussions. Proceed with caution and enter into these loan agreements at your own risk!
These loans are awful. They’re so bad, parts of the United States have made them illegal!
Companies that offer title loans lend on vehicles. You hand over the title to your car in exchange for some fast cash. But if the terms of the agreement aren’t followed, the lender can take your means of transportation.
The rates on these loans are sky-high, too. The average one is over 300% per year, which is 25% PER MONTH!
Your friends and family know you best. They’re often the most willing to help you get out of a bind. Some may offer you fast cash, which can seem like a good option.
But, when you borrow money from them, you’re putting the relationship at risk. If for some reason you can’t pay, it may lead to emotional strains and become a real tax on the relationship (pun intended).
A survey on Bankrate found that most Americans have financially helped a friend or family member. But, almost half of them had a bad experience.
If you choose to get a loan from someone you know, be sure to put the agreement in writing. The contract needs to spell out the terms and each party must sign it. Then, follow the agreement to the T!
These loans should be a last resort. They’re expensive and can have interest rates above 400%. That’s over 1% PER DAY and doesn’t include fees!
One study found that payday loans increased a borrower’s likelihood of bankruptcy by 200%. Their extreme costs further increase the debtor’s monthly expenses, making it even harder for them to pay bills!
A better alternative to payday loans is Earnin. This app allows you to get fast cash by using your paycheck as collateral. But, it doesn’t have high-interest rates or fees!
Before you get any fast cash, it’s important to consider a few things. You need to know the amount you’ll need and the length of time it’ll take to repay any loans.
If you take out debt, be sure to update your budget. Then, as your situation improves, use a system to get debt free.
When you need fast cash, focus on limiting the effects it has on your overall financial situation. Choose options that are free or low cost. Then, pay them off and get back to making your financial dreams come true!
How will you get fast cash if you need it? Comment below.
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