There may be times when you’ll be in a bind and the only way to get out of it is to have a sizable amount of cash. These unexpected expenses may involve medical bills that exceed your insurance coverage, renovations for your home after a calamity, or other unforeseen events that need a considerable amount of money to fix.
Here are ways you can access cash without breaking the bank — or robbing one.
1. Get a Personal Loan
These are loans for personal needs that usually don’t require collateral. Loan companies require minimal paperwork and can get you the money in as fast as 24 hours. You may get these from big banks, your credit card company, or a new credit category called peer-to-peer lending, where you borrow money from a single person or a group of people. You may also get a loan based on the equity of your car. Remember that you can only loan an amount equal to the net value of your vehicle with any money you owe on the car if you’re still paying for it.
2. Borrow from Friends and Relatives
This can be a tricky measure. The upside of being able to borrow from your friends and/or relatives is that your only collateral is their trust and your word. If the money you need is a large amount, try to borrow only what your friends and relatives can lend.
The downside is that borrowing money from them can put a strain on your relationship. Also, never assume or insist they write off your loan simply on the basis of your relationship. Pay back what you owe them as soon as possible and never use your relationships as leverage. Don’t forget that reliable and trustworthy friends and family are hard to come by these days.
3. Organize a GoFundMe
You can accept donations via a crowdfunding page, as long as it’s for a good cause. While you can be thick-faced and ask for money to buy or do something frivolous, don’t expect to get many donors or reach the financial target you set. However, this is a great way to get funds if you’re seriously ill or have a friend or family member whose stricken with no money to pay for medical services. ;
4. Take Out Equity on Assets
One good way to get quick cash is to take money out on your home equity. Note that this option will only be available to you if your home has increased in value. You can get money on the increased value of your home and pay it off later. This can be a complicated process, but you can ask mortgage refinance consultants in Salt Lake City to learn how to go about it.
You never know what life will throw at you, and not everyone will have the means or the savings to deal with unexpected events. Sudden illness, accidents, calamities can catch anyone off-guard and unprepared, and if you can’t get assistance, a large sum of money usually helps.
Remember that these strategies aren’t ways to get free money for frivolous purposes. ; Always keep in mind that any money borrowed from people or lending institutions are amounts you should absolutely pay back; more than your credit score, your reputation could suffer if you don’t.