Financial emergencies often occur, and most people find themselves in a situation where they suddenly need money but can’t get it immediately. Maybe you’re expecting your payday to come around, and suddenly, an emergency that requires instant cash arises. What’s the next line of action?
What do you do when you need quick cash? You seek a loan. But, not all loans are worth taking, and not all are easily accessible. What are some intelligent ways to seek loans when you need cash money fast? This article provides you with a rundown of some smart ways to get emergency loans.
- Pawn Shop Loans
Most people know pawn shops in their neighborhoods as places where they can sell personal items to generate quick cash. But what if you don’t have any personal item of value worth selling?
Aside from buying your second-hand stuff from you, pawn shops offer loan services to people as well. All required is that you drop collateral of any kind (as long as it’s of value). A pawn shop loan is one of the quickest and most trusted ways to get a quick loan regardless of the amount.
- Local Community Loans
Depending on where you’re living, local communities offer loans to people living within their community who need emergency financial support of any kind.
Whether the financial assistance you need is for your rent, electricity, utility, car gas, groceries, etc., your local community can provide you with a short-term loan that will go a long way in solving your immediate need.
Some places to get loans like these are community churches, community centers, and some non-profit organizations in your community.
- Payroll Advance Loan
Do you know that your place of work is another place to get an emergency loan? How cool is it that you can borrow from work?
Most people consider borrowing loans from their place of work because the payback process isn’t stressful at all. All required is that the company or organization you work for deducts a certain amount from your take-home salary every month.
- Peer-to-Peer Loans
The first instinct for most people when they need any financial assistance is to go to either family or friends. Going to your peers is an intelligent way to get a loan. Financially speaking, it’s better than going to a bank to collect a loan or going to a loan shark.
In cases where your peer might require that you pay a specific interest on the loan, the interest percentage is often relatively low compared to what a financial institution money lender might ask of you.
- Retirement Account Loan
Borrowing from a retirement account is specifically for people with a retirement account they fund regularly. If you have a 401(k) account or a personal retirement account you fund, you can borrow from this source.
For your 401(k) account, you must first verify that your employer is okay with you borrowing from the said account. If your employer allows you to borrow from the account, you can borrow as much money as $50,000, and the payback process spans five years. However, if no payment is made within 90 days, the loan becomes taxable for this loan strategy.
If you have a personal retirement account, it’s much easier, safer, and convenient to borrow from there and gradually make repayments.
Financial situations often arise that require one to take drastic measures. In a case of a financial need where you don’t have an emergency fund to get you through the situation, the above-listed tips are some of the best ways to secure a fast loan.
Financial emergencies arise now and then. This article looks at five ways to get the emergency funds you need in such situations.