At some point in their lives, most people find themselves in a situation when they really need money. Many are fortunate enough to be able to borrow on their good credit through traditional loans and credit cards. For others with poor credit or without income, it is much more difficult. This post will address what you can do if you find yourself in a situation where you really need money.
Use a Credit Card
If you have good or average credit then chances are you can use a credit card to get a cash advance or to pay for whatever it was that made you need money. This solution works well for most, and provides ample time to pay back the cash you borrowed. Interest rates can be high on credit cards, but are not as high as the interest on some of the other loans. Also, credit cards are highly regulated by consumer protection laws so it is difficult for them to legally take advantage of you.
Borrow Against Your Assets
If you are fortunate enough to have assets you can often borrow money against them. For example, if you have a house you could refinance your mortgage, take out a second mortgage, or open a home equity line of credit. If you have a retirement plan, like a 401k, you could probably also borrow against it. The good news here is that you are paying yourself back the interest. The bad news is that you are losing out on retirement savings. And finally, if your car is paid for (with no liens), you can get a short term loan against your car. A good example of this type of loan can be found at title loans Orlando.
Borrow Against Your Income
If you don’t have good credit and you don’t have many assets, the next opportunity to get money fast would be to look into getting a payday loan. A payday loan is a short term loan that is made against your next paycheck. While you can get quick cash from this type of loan, it can lead to trouble the next pay period when you have to pay back the loan. This type of loan is really just a way of getting the money early for your next check. And interest rates on these loans are very high.
If you are really under financial hardship and have bills to pay, you can always stop paying them. There are consumer protection laws that can help you remove or reduce your debt burden. Before you take this approach, I would suggest you find a consumer advocate group that would educate you on your options and give you specific guidance on how to approach this decision.
Find More Ways to Earn Money
And finally, the best way to get money when you really need it – increase your income. While you might not be able to get a new job right away, there are always quick and dirty jobs posted on craigslist that can help pay the bills. Getting a second job might sound terrible but could be temporary while you get back on your feet.