Dealing with a financial emergency is downright scary. You can’t help but wonder how you’ll ever get out of the situation. The key is to prepare yourself for these kind of events, before they happen.
Of course, even the best-laid plans don’t always work out, in which case you need to know what to do next to take care of your financial emergency.
First, figure out just how dire the financial situation really is. Take a deep breath and do the math. Are you looking at thousands of dollars or a few hundred? The amount you need can shape how you get your emergency financial assistance.
If your financial emergency isn’t incredibly expensive, there are some great options that are affordable and easy to get:
• Use a credit card – If you have a credit card with a low APR, charge what you need and make a concentrated effort to pay it off quickly. If you don’t have a credit card, consider applying for one. Use the opportunity to look for 0% APR cards, just pay close attention to the expiration date of the promo period to make sure you pay the balance in full on time.Compare 0% APR Credit Cards
• Sell items If you have items around your house you no longer need/use, sell them. Using online marketplaces such as Craigslist or Facebook marketplace is a quick way to find buyers.
• Rethink your expenses If your situation is temporary, consider cutting some immediate expenses so that you have the spare cash. Dining out, shopping and salon visits are a few common areas you can sacrifice until your financial emergency is resolved.
If your financial emergency is larger than what a credit card or selling items may provide, consider the following options:
• Take out a home equity loan – If you have equity in your home, you may able to tap into it with a home equity loan or line of credit. It could take a few weeks to get the loan through underwriting, though, so plan accordingly.
• Debt consolidation loans - If you have a ton of debt that’s eating up your monthly income, consider a debt consolidation loan. You’ll wrap all of your debts into one payment, which may then free up other cash that you can use for your emergencies.
Not sure which offers you may pre-qualify for? SimpleDirect has built a simple, no credit-check tool that will help you see which lending partners you may be qualified for. See your options below.See My Personal Loan Options
• Cash in your investments - If you have money in investments, you can cash them in and take the cash. Watch out for the tax penalties and the potential loss that this may incur, but if you have no other way, it may provide the cash you need.
Facing a financial emergency is never fun, but with a few steps, you can get around it with ease. The best thing to do is prepare yourself for an emergency by saving enough money in a ‘rainy day’ account so that you have the funds to fall back on should you need them.