What’s the best way to fund your emergency?
You can never predict when, how and where an emergency will happen. It could be an illness, an accident, or some other sudden unexpected need. In an emergency, the situation requires your quick attention and, most importantly, a large sum of money.
Unfortunately, most emergencies happen when you’ve used up all the money in your pocket, home, and savings account. When you don’t have the money to fund your emergency, you have several options.
A payday loan is a cash advance to help you meet an immediate need until your next paycheck. Payday lenders have relaxed terms that make the application process simple and straightforward. They are donated in small amounts ranging from £ 50 to £ 1,000 or more.
Most, same day payday loans are applied online and are generally easy to apply. Since most of the people who apply for payday loans need the cash quickly, their processing time takes a few minutes or a few hours.
Lenders ask for very minimal documents and the payment term is normally 30 days, although some extend the time. Due to their quick processing time, they attract a higher rate of interest than other types of loans.
In an emergency, you can apply for a payday loan online even if you have never taken out a loan from a lender before. You only need a savings account as they directly deposit the money into your account so that you can access it in cash.
You will be required to provide proof of income which may be your salary, business, freelance, or casual job. Due to their limited protocols and processes, payday loans are considered the best way to cover emergency costs.
Friends and family
Most family and friends will help if the situation is considered an emergency. One of the most difficult things will probably be calling family members asking for money, but it would be okay to feel embarrassed and get help when you need it most.
While some family members are willing to lend you interest free, some will ask for a small premium. Before accepting the money, understand the payment terms well so that you do not face surprises and embarrassments later.
Always consider borrowing from your closest friends, as they might understand your situation better than distant friends. The same would apply to your family members because they know you and your loyalty better.
Personal bank loan
A personal bank loan can be granted through traditional banks or credit unions. They are paid in fixed installments until you fully repay the principal plus interest. The financial institution will ask you for several documents before allowing you to complete its loan application form.
You must have a good credit score and a stable income line such as a permanent job or a business. Depending on the financial institution, processing time may take 48 hours or more. Once the check is processed, you deposit it into your account and wait for it to expire.
Advances can help you deal with an emergency need quickly if you have a good line of credit. If you have a credit card and available credit, you can request a cash advance that can be processed the same day if you have an emergency to deal with.
Advancing funds by credit card also has its drawbacks. You are not granted a grace period and interest begins to accrue immediately. If you take longer to repay, you could end up paying a lot of money. Bank advances attract higher interest rates, and the credit card provider may also charge you a premium.
Some employers may allow their employees to take an emergency advance on their wages. If you are an employee, check with your manager if the company allows such an arrangement.
If so, take advantage of the window and request an advance. Some employers will deduct the entire advance on your next payday and others will spread it over the next few months. The biggest advantage is that you won’t pay back the interest.
Sell your items
If all of the other options don’t work, it won’t be wrong to sell some of your property for quick cash. Check out your home and get the items that can sell quickly like your computer, refrigerator, television, microwave, stove, etc.
Take photos of the items you want to sell and post them on social media or other online platforms. Do not give the impression that the situation is hopeless as some buyers may take advantage of it and offer very low offers.
Before downloading the items, set your price and keep in mind the lowest minimum you can take. After getting a buyer, negotiate in your favor and make sure you get your full payment before handing over the item.