Ideally, everyone should have an emergency fund. This is not the same as savings. A savings account and its purpose is both short-term and for the distant foreseeable future.
An emergency fund is a stopgap measure. You should always have some funds to manage a crisis (unexpected hospital visit or a home repair) and whenever you have saved more than what is deemed necessary, the surplus can move into the larger savings account.
When you don’t have a designated emergency fund and a designated savings account, the fear is this…If you conflate your savings and your emergency fund then you may end up with neither.
An emergency may be foreseen or unforeseen, manageable, or daunting. Regardless of the nature of the emergency and its severity, you may need some cash. You may not be able to turn to your bank if all you need is a few hundred dollars. Banks will only entertain loans worth several thousand. In any case, many people get turned down by banks due to poor or average credit score.
Here are a few real answers to how to get cash for an emergency.
Options for Getting Money Fast
There are many ways to come up with the money for an emergency. Some will depend on your credit or other financial circumstances. This is not an exhaustive list but it’s a good start to find yourself that much-needed cash.
Borrow from a Friend
A personal loan from family, friends, or colleagues is the best option. You can borrow some cash without any interest and diligently repay it in due course of time—just try to keep your relationship intact!
Unfortunately, many people do not have the option of asking family or friends. Some people may not be in a position to lend a few hundred or thousand dollars out to anyone.
Payday Loan or Cash Advance
A payday loan is an easy way to get a few hundred dollars. This option is simple but does carry risks due to high interest rates.
If you are employed with a company that has a provision for a cash advance, then you might want to explore this option. A cash advance is not very different from a payday loan. You will be repaying the borrowed money when you get your next paycheck. Plus, a cash advance from your employer may be evenly split into installments so you find it easier to repay. The only difference is that your employer may not charge interest—again, we say may not.
As stated above, a payday loan will have a substantial interest tacked onto the cash. Moreover, you will have to repay at once when you get your next paycheck. Look at these two options carefully.
Car Title Loan
The best choice, if you do not have any other option, is a car title loan. You can also use a motorcycle or a boat for a title loan.
If you are not familiar, a car title loan is a secured short-term loan. It has lower interest than that of payday loans. The amount you may borrow will depend on the value of your car—you can find this on Kelley Blue Book as an example. For this reason, you can borrow more than what a payday loan will offer or what your employer may be willing to approve as a cash advance.
You can repay a car title loan in thirty days. Some lenders will offer you a longer repayment term. Additionally, lenders like Titlemax, Titlelo, and LoanMax allow the renewal of the repayment term so you do not have to worry about losing your car.
These are the best options for getting cash in your hand in 24 hours or less. Again, some of these options will be better than others, but this is a great start to get yourself out of a jam.