Aug 21, 2015
Whether it is not being able to make payments or even the loss of a job, being strapped for cash is hardly the way to go.
If you’re in such a position, then you might feel as if there’s no place to turn to. While there are a number of options that are available, it’s best to save for a rainy day instead.
Still, here are 3 other emergency options just in case you haven’t given it much thought:
1: Personal Loan
You have both secured and unsecured personal loans at your disposal. Banks and other financial institutions offer these two options. Of course, it depends on your credit score. The higher your score, the better the interest rate obtained. Personal calculators are available to find out how much you want to pay every month and totally based on the loan amount. Yet it is important to know the difference between payday and personal loans.
2: Peer Lending
There are a number of P2P sites that allow you to borrow from strangers in the form of a personal loan. But keep in mind that the interest rates on the loan you do get is based on your credit score. Of course, you’ll have to show recent pay stubs in order to prove your income. Also, be ready to deal with late fees and credit mark downs if you’re late in paying your installments.
3: Home Equity
You can use your home as collateral so as to finance large expenses. Keep in mind that you will risk foreclosure if you cannot pay the loan back. But it’s very easy to qualify for and the interest rates are very low. One thing to keep in mind is that this is a complex financial product. Ensure you know how it works before signing on the dotted line.