Life does not always go as expected. You may come across situations that leave you strapped for cash. Someone you love might fall sick or meet with an accident. You may suddenly lose the job that you were banking on. Your car’s transmission might blow. That’s when you turn to your family and friends to help you with some emergency cash. But you may not get lucky all the time. Not to worry. Here are a few ways to raise funds whenever you need them:
CDs, Bonds or Stocks
It may not be ideal to cash in your investment instruments whenever you face an emergency. But this option is much better than the others. Nevertheless, you may have be ready to pay up some taxes or even tax penalties, depending on the kind of investments you have made.
Life insurance policies
Life insurance policies are for safeguarding your life and the future of your family members. But you can always borrow against them if you need some money. The cash payout that you get might get reduced. But the best part is that you don’t have to pay taxes. Alternatively ,you can even cash out your entire policy.
Overdraft Loans
Most banks and credit unions offer overdraft protection if you have accounts with them. The interest rates might be high; but you can still satisfy your emergency cash requirements.
Home Equity Loans and Reverse Mortgages
If your cash need is huge borrowing against the equity of your home would be a better option. There are many lenders who can help you. However, you may still have to think of repaying these loans, if you don’t wish to lose your house.
Charitable Organizations
Getting in touch with a charitable organization that can offer financial assistance can be a good way to satisfy your urgent cash needs. You can also find assistance from your local municipality. You may have to however put in some efforts and wait for a while.
Credit Card Advances
This is by far the easiest way to get some extra cash, if you have not already maxed out your credit cards. But you may have to deal with the steep interest rates that credit card companies charge on such cash advances. Also, you can’t miss your payments if you wish to avoid paying penalties.
Personal Installment Loans
If your monthly income is getting insufficient to meet your needs, personal installment loans would be a good option. These are online loans that do not need any credit checks or collateral. You can choose a suitable repayment term as per your situation. You don’t even have to worry about prepayment penalty.
Doing a few odd jobs in your neighborhood is also a way to get some emergency cash. Ask your neighbors if they need any help with their chores. You will be amazed how much of money you can make right there in your neighborhood.
You can even think of selling some stuff that is collecting dust in your home. Put up a yard sale or post online ads not only will you get the money you need, you also get a chance to declutter your home.
If none of these work for you, there is always the option of selling a car privately for cash. There are many firms that buy cars and give cash instantly. You can always buy another when you have the money.