It can happen without warning! The car breaks down, or you're faced with a medical emergency, or a death in the family. Whatever form it takes, you have an emergency. But, it's the middle of the month, your credit card is maxed out, and you have no cash! You need emergency cash, and you need it now. You turn to your family and friends, but they can't help. Where can you get some cash?
Obviously an emergency is not something you plan for, it just comes at you out of the blue. If you need money, and you are unable to borrow it from family, you can take out short term loan, or cash in an investment.
There are several loan options available for emergency cash. However, you must remember that emergency cash loans are usually short term; therefore interest rates tend to be higher. Emergency cash loans can come in the form of a pay day loan. If you think you will be able to repay this amount by the next payday, then this is probably the option you need to consider. The advantage of taking out a payday loan is that it is generally simple and easy to get. To qualify for this type of loan, most lenders require that you be over the age of 18, be employed, and have a bank account.
Nowadays, companies offer pay day loans which can be approved and disbursed the very same day. The process is pretty simple. In many cases, you can complete and submit the application form online. As soon as the loan has been approved, the funds transferred directly to your bank account. In terms of repayment; it is generally expected that repayment will be made in one installment, at the time of your next paycheck. However, it pays to be cautious. When opting for an emergency loan online, ensure that the company is accredit by the Better Business Bureau, and has their seal of approval.
Emergency cash loans are also available from the bank. The bank can provide you with an unsecured loan, home equity loan, or home equity line of credit. Bear in mind though that this will not be a same day loan, so if you need the money quickly, it is not your best option. Also, banks will require more information, and will charge a higher rate of interest. If you have investments such as CD's, you can consider cashing them in. Obviously, there will be a penalty for early withdrawal. So be prepared to pay it. Consider it the cost you will have to pay, if you go this route to access emergency cash.
Another option for emergency cash, is to borrow against your insurance policy. Those policies that have an investment or saving component, such as universal life, can be a good alternative to obtain cash in a time of crisis. If you have had the policy for several years, then it is very likely that enough cash value would have accumulated to allow you to borrow from it. A financial crisis can arise due to any number of factors, but if you need emergency cash you do have options. Although, you need money fast, take the time to reflect on the options. Having done that, you can make the decision that is right for you.