Life has a way of throwing emergencies at you at the worst possible time. No matter who you are, the one thing you can trust is that a medical emergency, need for a household repair, or car trouble can fall upon you without any warning. In many cases, there may be two financial emergencies at once. By making use of a few different ways of getting the extra cash, you may be able to cover these expenses without disrupting your household budget.
Tap Into Your Savings
Ideally, you should have already started a savings account especially designated for dealing with emergencies. Even if you have saved very little, using this money first will help you avoid building up more debt. At the very least, accessing your savings can cover a portion of the emergency, reducing what you may have to borrow. Even after you use this money, create a plan for continuing to rebuild the account after the emergency passes. Contributing regularly will ensure you’re better prepared to cover the next emergency.
Pick Up a Second Job
If you don’t have that emergency fund to fall back on, try finding extra work. Now that the internet has normalized remote working, you may be able to find a work from home opportunity. You can use your skills to freelance, or, if you’re creative, you can sell your original pieces for a profit.
Borrow What You Need
Another option is to take out a personal loan to cover the cost of the emergency. One of the benefits of a fast cash loan is that you can get the emergency taken care of immediately. While this will require reworking your household budget to include the repayment of the loan, this is often the easiest way to get out of a bind. You can get a small personal loan, car title loan, or you may qualify for a larger personal loan. Whichever option you choose, be sure to shop around for the best rates.
Open a HELOC Account
If you have enough equity in your home, you may be able to qualify for a HELOC. A homeowner’s line of credit will allow you to get the money you need to cover a household emergency while charging you a lower interest rate than you would pay on a traditional loan. You can take what you need up to your limit throughout the draw period and make interest-only payments until the repayment period starts. At this point, you begin repaying the principal and interest together.
Use Your Credit Card
While this may be the last resort, using your credit card can help you cover an emergency that isn’t too costly. Of course, it will depend on your credit limit and interest rate, but it can help you pay for something that requires immediate attention. For instance, you can use your credit card to pay for a new water heater. If you can work out a way to pay off that debt within the same billing cycle, you won’t even have to pay the interest on it.
While you should have an emergency fund consisting of at least $1,000, many people lack this resource. If this sounds like you, these suggestions may provide alternative sources of money in an emergency. Using multiple resources can help you cover the emergency more efficiently while reducing the amount you’ll have to borrow. Conducting your own research may even uncover more options for helping you get out of your bind. Just remember to develop a repayment plan for any money you borrow, or your temporary crisis may turn into a long-term hardship.