Did you know as many as 12 million Americans use payday loans every year? Flooding, car accidents, more expensive utilities, or even rent can come up more quickly than you’re expecting and you need emergency cash.
If you’re stuck in a financial bind and you’re not getting paid for another week, you need to find money fast before you’re charged a late fee or worse. Keep reading and we will guide you through the simple way to finding emergency funds.
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Smart Budgeting
When you’re in a bind for cash, you may think it’s too late to start budgeting. However, when you get settled and find your emergency money, you should start preparing to budget.
Money management is very important and most financial advisors say you should have 3-6 months of basic living expenses set aside for an emergency. This can cover if you have to pay more than usual for your utilities or if you have an unexpected flood and need to cover the cost of repairs.
It puts you in a good spot to have some money if an emergency ever comes up and you can try to pay it off in smaller payments if paying all at once isn’t the best option for you. However, we know this isn’t always the case that you have money set aside, so we will walk you through emergency loans.
Get Emergency Funds Fast
If you’re in a bind and need to get emergency cash, you want to avoid a high interest or predatory loan. Personal loans, payday loans, and credit cash advances are three ways to get paid early.
Personal Loans
Personal loans are a form of credit that you can use for anything, including emergencies. Most lenders will get you next or same-day payout if you’re approved, so you can use it if you need emergency money fast.
Some interest rates may be higher than others, and it usually depends on your credit score. However, they will work with you if you have fair credit. Also, you can usually pay these off over a few years, so you won’t need to immediately find a large sum to pay them back.
Make sure to do your research and get a few quotes to find the best option for you with the lowest interest.
Payday Loans
You should avoid payday loans. These usually require you to pay them back in a two-week timeline and have very high interest rates.
Credit Card Cash Advances
This can be a backup option if you don’t have great credit and can’t get a loan, you may be able to take out some of your credit card balance as cash. Your interest with quickly accrue and you won’t receive a grace period, but it’s another way to get cash quickly.
Payactiv can help you with money management and walk you through your best options if you’re in a bind. For more tips, check out this article.
Be Prepared for an Emergency
You know you have options if you need emergency funds, however, the best approach to an emergency is to start setting aside money now and budgeting.
Personal loans, payday loans, and credit card cash advances are all options, but they can add up, and interest with a sneak up to you quickly.
Set up autosave each month to put money into an emergency fund or keep reading about The Fortunate Investor.