A financially fit family is ready for any obstacle that comes their way. Creating and living by a reasonable budget is the foundation for financial fitness, but it is not always enough. After all, you may be faced with numerous unexpected situations that you have not budgeted for. For example, you may need to pay for expensive emergency dental care or necessary auto repair services.
When you have these or other types of significant expenses, you may initially tap into your cash accounts. You may an emergency fund as well as a savings account. However, what if the money in these accounts is not enough? What should you do if you just used those funds for the last emergency and have not had time to increase the account balance?
You need to be prepared for situations like these, so now is the time to learn about resources available when you need quick cash.
1. Apply for an Online Loan
One idea is to apply for an online loan. Compared to bank loans, online loans may sometimes have a faster loan process. However, the applicant requirements for these loans and the processing time vary dramatically. Before you spend time applying for an online loan, take a moment to review applicant requirements, loan terms available and the estimated time from application through funding. Doing so will help to ensure that you are walking down a truly helpful path.
2. Take Out a Payday Loan
A variation of an online loan is a payday loan. Payday loans are emergency short-term loans that may provide you with the cash that you need within a few days or less. You may be able to apply for these loans by phone or online so that you can get the ball rolling on the application immediately. Compared to other types of loans, the loan amount for a payday loan may be lower. However, these loans are often ideal when you need to access to more cash as soon as possible.
3. Use a Cash Advance
You may have thought about using your credit cards in a time of need. Some expenses can be paid for with a credit card, but others require payment via cash or check. A possible solution is to take out a cash advance against your credit card. This can most easily be done by accessing your account through an approved ATM. You can contact your credit card provider for a list of approved ATMs nearby. Because you do not need to apply for a loan to take out a cash advance, this is a very fast way to obtain cash. However, the amount of cash available to you will be limited by your account terms and available credit. In addition, your credit card company may charge a special transaction fee, and a special interest-rate may apply.
4. Apply for a Line of Credit
A line of credit may be a preferable option in some situations. The application process may be similar to that of a loan. Once you have been approved for a line of credit, you can take draws against the credit line as needed rather than receive a lump sum of cash. If you will have a series of expenses, a line of credit could be reasonable. The monthly payment on your line of credit is dependent on the outstanding balance.
5. Get an Installment Loan
Your bank may also be a viable source for extra funds. Bank loans may take several days or longer to process depending on the bank and the type of loan that you are applying for. These loans may be unsecured or secured by collateral that you pledge. A bank installment loan typically requires you to make regular monthly payments for several years. If you need to borrow a larger sum of money and need more time to repay the funds, an installment loan could be a smart option.
You can see that there are numerous financial options available to consider. These various sources of cash each have different features, benefits and drawbacks. By learning more about these options today, you can develop a reasonable plan for dealing with various types of unexpected situations that you may be faced with in the years ahead.]
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