According to statistics, the average American household carries over $100,000 in debt.
This speaks of how important money is for Americans to pay for expenses they may not be able to afford. It also speaks of how important it is to learn the various ways to stay out of debt.
Part of the answer to staying out of debt is having emergency money.
Emergency funds, also known as rainy day funds, is nothing but a backup so you don’t have to put money on the credit card. It’s a relief system. It gives you some financial stability in case something unexpected happens.
Here’s a guide on the 5 best borrowing options for financial emergencies. Now you can feel financially secure with these incredible borrowing options and payback without drowning in debt.
1. Cash Advance Loans
A cash advance loan option is often short-term and can help you get an emergency loan. Some terms can only be about a week or two, or you can find cash advance options that offer a repayment option within 3-months.
2. Personal Loans
Irrespective of your credit score, some lenders offer quick personal loans that you can use for any purpose you like. A personal loan helps you get a specific amount at a specific rate.
You can also get a personal loan for a small amount of money. Based on your credit, you can get a loan for an emergency situation based on what you need.
3. Payday Loans
This is another great emergency loan option. Payday loans are paid back all at once on your next payday.
Although they can have interest rates, payday loans are a great option when you need money right away and you can pay it back quickly.
4. Low-Interest Credit Cards
Finding a low-interest credit card, preferably around 0%, gives you the option to borrow money with a credit card and pay it back in 6-months or however long before it starts accruing interest.
Just remember, applying for a credit card means it will result in a hard inquiry, which can lower your credit score.
5. Home Equity Line of Credit
Lastly, a home equity line of credit is when you use your home as collateral when you are paying for a loan. This gives you some flexibility if you have a home and need financial assistance.
Just be aware of how soon you need to pay back the loan. You should also keep an eye on the interest rate of the loan, so you aren’t paying way more than what you originally borrowed.
Why Emergency Money Isn’t an Option, It’s a Necessity
Emergency loan help is always available, it’s just a matter of finding where it is.
You don’t want to get stuck with credit cards or forms of emergency money that will leave you a worse situation than before you borrowed the money.
You can also still find ways to get emergency loans with bad credit, no payback loans, and other forms of loans. You just have to be willing to find and apply to them.
You can learn more about managing your money and financial tips on our website or by contacting us.