Preparing for an emergency involves setting aside some cash to use. However, not everyone has enough money to save up for such an occasion. Also, the cash you save may be inadequate to solve the problem you are facing. So, where else can you get the money to assist you out of an emergency? Here are ten sources for you to consider
Sell Items You Do Not Need
Go through your house and identify items that you can do without. Hold a garage sale if you have many items to sell. You could also sell them online through sites such as e-bay. Use the cash to settle the bills associated with the emergency
Take Cash On Investments
If you have investments such as shares and bonds, there’s no better time to cash in on them than when you need money. Liquidating your investments keeps you from borrowing money which you might have to pay with interest. Only sell enough to raise the amount you need and keep the rest of the investments.
Your bank can allow you to withdraw more than you have in the account. In case of an emergency, do not hesitate to take the overdraft. The bank deducts the overdraft and the interest charged from the amount you deposit in your account.
Try applying for a personal loan from the bank if you have some days to raise the money. Personal loans are excellent for an emergency because of the comparatively low interest that they charge. Also, the bank process the credit within a few days.
Take some of your items to the pawnshop to get cash for your emergency. Unlike banks, pawnshops do not require explanations of how you intend to use the money. However, you should note that the interest is relatively high and you risk losing your possessions if you fail to pay on time.
You can try getting a second job to supplement your income. Use the extra income to offset the bill that came as a result of the emergency. A second job can be odd, something that you can do during your free time. It could be anything from walking dogs to babysitting.
Your Life Insurance Policy
Have you been diligent in paying your life insurance policy? You can take a loan against it. Your insurer can advance you a loan. This reduces the pay-out amount. If you need more cash, you can decide to cash out the policy and use the pay-out to settle your emergency.
Home Equity Loan
Try taking a loan against your home. This loan has a low interest because your home serves as equity. This method allows you to raise a significant amount of money to use for your emergency.
This option is for when you desperate for the cash. Although you receive the money instantly, they charge some of the highest interests. Be careful not to default and get caught up in a renewal cycle.
Credit Card Advance
Your credit card can advance you cash if you have not used the entire amount allowed on your card. However, be wary of the high interest that credit card companies charge when they lend you cash
There is no option for raising money for an emergency that comes without a price. If you take a loan, pay up fast and start saving immediately.