(Akiit.com) Need some cash in a hurry? Nowadays there are plenty of ways to raise last minute funds. Some emergency options are likely to be more suitable than others – each comes with its own pros and cons.
Here are five methods to consider and how to use them successfully.
Take out a loan
Loans are the most common way of gaining access to emergency cash. That said you should be careful – many emergency loans have high interest rates. Many low interest options such as bank loans may require you to have a good credit score and may be processed more slowly. An exception is peer to peer lending – a method of
borrowing from private lenders on the internet that often results in lower interest rates and a quick process time. Loans are most suitable if you need a lot of money and are prepared to pay more in the future.
Use a credit card
Credit cards are a simple and convenient way to borrow money instantly. By shopping around for the best credit cards, it’s possible that you may be able to find cards with 0% interest rates for a limited time, saving you money compared to a loan. That said, credit cards aren’t suitable for large purchases of multiple thousands – many have spending limits or will have charges if you spend a certain amount in a certain time. Consequently, you’re best keeping credit cards for smaller purchases no more than a few hundred dollars.
Sell/pawn your possessions
Another way to make some quick cash could be to sell or pawn possessions. Many of us have unused possessions that we could make money out of – these could be anything from inherited heirlooms to unwanted gifts. In order to get money fast, you’re best off targeting second-hand stores and pawn shops who will buy your items there and then – when selling independently online, you could have to wait days to find a buyer, which may not be useful in an emergency. You can also sell broken items such as old laptops and phones for parts. Unlike loans and credit cards, you won’t have to pay the money you earn back. Find the closest pawn shop and have them evaluate your items, but make sure to go to a couple different shops to see who gives you the best offer.
Take money out of your pension
In many cases, you can also take money out of your pension. This can be a relatively quick and easy process, allowing you access to lots of money. Of course, whilst you won’t have to pay this money back, it will impact you in the long run by giving you less of a pension to survive on. If you don’t think you’re going to have a large retirement fund, you may want to think twice before dipping into this pot of money.
Borrow from friends/family
Borrowing from friends and family works much like a loan except you likely won’t have to pay interest and you can pay the money back more flexibly. Of course, it does require having a friend or family member who can afford access these funds. Borrowing from friends or family could also strain relationship ties so you should be careful who you borrow from.
Staff Writer; Peter Brown