If you’re like most Americans, you may be struggling financially. A recent study by Prudential Financial found that 46% of Americans are dealing with financial hardships.
The good news is that it’s not difficult to get emergency money if you’re dealing with financial hardship. From taking out a personal loan to improving your credit, there are many ways to do so.
In this article, we’ll discuss all the ways to get emergency funds if you really need them.
Take Out a Personal Loan
A personal loan is basically a form of credit you can use for almost any situation. This is one of the best ways to receive emergency cash during financial difficulty.
Fortunately, you can receive a personal loan regardless of your credit score. However, your credit score will impact the interest rate of your loan.
Consider Credit Card Cash Advances
Getting a cash advance on your credit card is also a popular way of receiving emergency cash.
This method basically involves getting a cash advance against the credit limit of your credit card.
Even if you don’t have the funds readily available, you can take out the money you need to use in any financial difficulty.
Now, the problem with this method is that your interest rate will increase. You will also have to pay a penalty APR rate if you miss any payments.
It’s also worth pointing out that most people who take out a cash advance are more likely to default on their credit card debt.
If you don’t create the best personal finance strategy, you could fall into an endless cycle of debt for years.
Take Out a Payday Loan
A payday loan is a short-term loan that can be used during emergencies. You can take out a payday loan of as much as $10,000 depending on the creditor.
However, these loans are known for their high-interest rates. Historically, payday loans involved borrowers writing postdated checks to their lenders.
In return, they will receive part of their check in advance. Like credit card cash advances, payday loans can put borrowers in an endless cycle of debt.
Set a Budget
Overall, taking out loans is a short-term solution to getting emergency cash.
If you don’t set a budget, you could spend all of your emergency money and end up in a cycle of debt. To prevent this from happening, make sure you set a realistic budget for your home.
A budget will help you set a limit on how much you can spend on your wants and needs. It will also give you a glimpse of how much money you’re bringing in every month.
However, if you exceed your budget, taking out a collateral loan is an option for receiving emergency funds when you need them.
Receive Emergency Funds Today
As you can see, it’s not challenging to receive emergency funds during financial hardship. Following these tips will help you keep your finances under control.
Do you want to learn more about personal finance tips? If so, check out more of our finance articles.