If you’re in need of money in an emergency, it can be difficult to know which way to go. When you feel panicked, making decisions and coming up with solutions becomes so much harder. However, there are a few things you can do if you’re in need of cash fast. Read on to find out what they are:
Don’t Do Anything Drastic
First of all: don’t do anything without thoroughly researching it first. Avoid payday loans and anything with super high interest that could come back to bite you – because it will. You may have every intention of paying that loan back, but if you can’t afford the payments or the interest, then you’ll end up digging yourself into debt deeper and deeper. Learning how to sell an annuity may be a much safer option if you’re in a position to do that. Try to take your time and research all of the avenues available to you.
Sell Things You No Longer Use/Want
Go through your things and see if there’s anything you can sell. It’s probably not a good time to sell family heirlooms or things that are dear to you, especially if you know you will be devastated if you can’t get them back later on. However, if you have old clothing, furniture, and other pieces that you don’t really use, selling them could be a good option. Just bear in mind that people don’t always jump at the chance to buy second hand stuff unless it’s rare and highly sought after, so it might take a couple weeks before you have the cash.
Take On A Few Odd Jobs
See if there are odd jobs you can do around your neighborhood. You could be a dog walker for the old couple across the street, or paint a wall for somebody.
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Get An Overdraft
An overdraft can be a safe way of borrowing money because the fees are often low – you just need to call your bank to set one up. That being said, you shouldn’t use your overdraft if you don’t know when you’ll be able to get out of it, and especially not if you’ll be making your way further and further into it.
Take Out A Home Equity Loan or Reverse Mortgage
For those who need a large sum of money, borrowing against the equity of your home could be the only option. They can have many advantages, including low-interest rates, and long loan terms. However, you must repay the loan before the term is out or you may lose your home.
A reverse mortgage is a loan that allows older homeowners to borrow from their equity without having to make monthly mortgage payments. This could be suitable, providing the payments are made on time.
Ask A Member Of Your Family
Asking a member of the family could be a good idea – they are unlikely to charge you interest rates, but knowing that you can pay them back is key or your relationship could suffer. Coming up with an agreement beforehand of how much you’ll pay and when will help.
What To Do In Future
Saving an emergency fund now, even if you can only commit a little each month, will help you to avoid situations like this in the future. You may have to make a few sacrifices, but in the end, it will be worth it.