With what always seems like a thousand competing financial needs on your income, saving is indeed an uphill task. For this reason, it’s not uncommon to find yourself with an urgent need for cash and no emergency savings to cover it.
What are your options when this happens? Here are some suggestions of what to do when you require cash urgently.
1. Get a Loan
There are numerous lenders today that can advance cash quickly to borrowers. It is, therefore, useful to consider emergency loans in Canada.
Unlike traditional loans with lengthy processes and numerous checks and requirements, emergency loan lenders tend to have shorter processes and disburse money faster. This is just what you need in an emergency.
There are numerous types of emergency loans as well, including no-credit-check loans and bad credit check loans.
2. Sell an Item
For this to be successful, you need to find something you can sell quickly. This locks out assets like cars and houses, which have lengthy sale processes.
On the other hand, items like clothing and jewelry can be liquidated easily in pawn shops and online. To get started, identify an item for sale, price it correctly and then advertise it. Start with word of mouth to friends and family, place an ad on social media and online platforms.
3. Borrow From Your Circle
Another option is to borrow from people known to you. This is advantageous on several fronts.
- The first is that they are unlikely to do a credit check, meaning your credit does not affect whether they advance you the cash or not.
- The second is that they are unlikely to ask you to repay the cash with interest, as most lenders would. This makes borrowing from friends a cheaper option.
- The third is that there are unlikely to be any collateral requirements.
However, always ensure to repay cash loaned to you as agreed. If unexpected occurrences happen and make it impossible for you to repay, be sure to let the lender know well in advance.
4. Apply for a Salary Advance
If you are in formal employment, talk to HR about the emergency and find out if the company offers salary advancements.
This is generally an advance payment from your next salary. Once the cash is given to you, the amount is then deducted from your pay in the coming months. Hr. can tell you how many installments they can recover the money in.
These are some ways in which you can cover financial emergencies. However, you need to work on a better plan for your future. Begin by opening an emergency savings kitty.
With this in place, you will be better able to handle cash emergencies in the future.