No matter how much money you make, there always seems to be some financial problem lurking nearby. There always seems to be some emergency that requires more money than you have on hand to take care of.
The car breaks down, the pipe upstairs bursts, the kid’s tuition becomes due, you get a shutoff notice for the gas bill, and the problem cannot be put off. What do you do? Where do you turn? Certainly, you can’t sit in a house with no gas or electric. You also probably don’t want to let that pipe keep leaking in your home. Here are some options that may be available to you.
Depending on where you work, you may have several financial resources available to you.
Paycheck advance – Some employers, for instance, allow their employees to take out advances on their paychecks. If the issue was something like the kid’s tuition needing to be paid before your next payday, you could simply ask for an advance.
Retirement accounts – If cash advances aren’t offered, but you have a retirement account through your employer, you may also be eligible to take out a loan. You will be required to repay the loan with interest, and will likely have the payments directly debited from your paycheck each pay period.
If your employer doesn’t offer paycheck advances and you don’t have a retirement account (or don’t like these options for other reasons), short-term loans are another solution for dealing with financial emergencies. Unlike traditional bank loans that can require collateral, proof of employment, and a high credit score, short-term loan companies like MaxLend.com offer loans for eligible applicants with fewer requirements. Some advantages to considering a short-term loan include:
- You can apply online – most short-term loans can be applied for online 24/7
- Decision made in seconds – online applications are submitted in seconds with a decision made right away.
- Cash deposited within 24-48 hours – once all information has been confirmed, applicants can receive their approved funds within a day or two.
- Flexible repayment options – Instead of having to repay the loan at once, you can pay in small installments over a longer period of time.
- No credit and bad credit not an issue – many short-term loan providers don’t check your credit. As long as you have a reliable source of income, you can borrow the funds.
Sometimes, the best place to go when you need help is to your friends and family. They individually or collectively may have the funds you need to take care of your personal emergency. Keep in mind, however, borrowing money from your friends and family can be risky business. Failing to repay in a timely fashion and in full can create conflict where it’s not necessary. To prevent this from happening, consider the following:
- Only take what you can afford to repay.
- Don’t overpromise (in other words, come up with reasonable repayment arrangements).
- Get it in writing.
- Communicate if something goes wrong, don’t just disappear.
- Treat it like a bill, just because it’s your family member or friend doesn’t mean you shouldn’t pay the funds back timely.
One minute, you’re on top of your finances and everything is in its place, the next, you’re scrambling around trying to figure out how to pay for some unexpected expense. Although preventative measures like having an emergency fund are ideal for situations such as these, if you don’t have an emergency fund at the moment, or the emergency exceeds what you have saved, the above-mentioned options should get you the cash you need in just a few days. Remember to weigh the pros and cons of each option and whichever you choose, be sure to borrow responsibly to avoid higher debt and frustration later on.