Emergency Cash
When an unexpected situation arises that calls for more money than you have available, you may need to get some emergency cash.
Sources of Emergency Cash
To get some quick money, You can:
- Dig into your savings
- Liquefy some investments
- Ask friends or relatives for money
- Get a home equity loan or second mortgage
- Refinance your home and take out some equity or be able to skip payment for a month or two.
- Get a signature loan (unsecured loan)
- Sell some items that you own (local pawn shop, have a garage sale or use Craig’s List)
- Try to get an emergency cash loan from a bank
- Use a credit card for a cash advance
- Use a paycheck advance company.
The amount of interest that will be charged for your short-term loan will depend on which source you use, how much money you need, (possibly) your credit history and for how long you need the money.
Reasons for Emergency Cash
People use emergency cash for reasons like:
- Groceries
- Healthcare / hospital bill
- Electric / utilitiy bills
- Avoid non-sufficient funds or bank overdraft fees
- Car repairs
- Rent / mortgage payment
- School tuiiton
- Consolidate bills
- Avoid bounced checks
Whatever your reason for emergency cash, a payday loan or paycheck advance can help you get out of a hole in the short term. They’re relatively easy to get and will require just a few things. You’ll need proof of employment, a paycheck stub, a form of identification, a checking account and you must be over 18 years old. You should check with your lender about which exact requirements they have but this gives you an idea.
If you do choose to sell some of your items like on eBay or Craig’s List, then be sure to set the price high enough that you can be haggled down but also low enough to attract attention. Figure out what price you will absolutely not go below before the buyer shows up. With online auctions, it’s nice to start the price out really low with no reserve and you’ll attract attention and hopefully start a bidding war.
If you are considering borrowing money from friends or relatives, make it easy on them by writing up an informal loan agreement, spelling out how much you need, when you will pay it back and if you are going to pay interest or not. Also specify what happens if you do not make your payment(s) on time. Be sure to set it up so that you are making timely payments. One tip here would be to make your payments a few days before they are due in order to keep the friendship in tact. Knowing that you want to do this, you can then set up the loan agreement so that you can make that happen.
Also consider doing some extra work. Sometimes friends or relatives need help with project or at their work. Put the word out that you are available for some extra work and often opportunities will present themselves. If you don’t ask, don’t expect these opportunities to happen.
Hopefully this article has provided you with some ideas on how to get some quick cash or emergency cash.
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