By: Raymond James
About the Author:
Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.
Emergencies are a natural part of life. They are something we want to avoid obviously, but they do occur at times, and it is best to face this reality and do what we can to prevent them as much as possible going forward. However, preparation is the best course of action, and that means knowing where to find financial funds in an emergency. We are going to look at five ways to make that happen right now.
Ask To Borrow From Friends Or Family
This is perhaps the most awkward of choices that a person could make, but there is no doubt that it is an option. Asking for a friend or family member to loan you the money could put you in a very uncomfortable place with that family member. You would want to draw up a contract with them just as if you are borrowing from another source because that is the only way that you and that family member or friend can remain completely clear on the terms of the deal being struck here. It is not easy to do this and to introduce the formality of a loan into your relationship, so you should seek other option whenever possible.
Borrowing A Personal Loan
There are companies that specialize in personal loans Australia that would be happy to strike a deal with you today. They will lay out all of the terms of the loan as well as the interest rate and any other relevant information that you may require about it. Use that information to make an informed decision about if you will decide to move forward with borrowing or not.
Interest rates are reasonable for what you are looking at getting here, and the amount that can be borrowed is enough to cover virtually any emergency that may come up. Thus, you should certainly at least consider getting a loan like this in order to put yourself in the best position to get back on your feet financially.
Look At A Loan App
If the emergency you need to cover is incredibly small, then there is nothing wrong with looking at a loan app as a source of some financial help. An app like Earnin is specifically designed to get you up to $500 before you next payday when you need it. You can inform the app of how much you make on your paychecks, and they will decide how much you qualify to borrow. They can even set you up to borrow the money instantly and have it in your account the same day. That is huge when it comes to emergency expenses that you didn’t foresee coming.
Take A Cash Advance On A Credit Card
Most credit cards allow their holders to borrow cash off of the credit on the card up to a certain amount. This is emergency cash that you can use to cover something that is coming up today. However, you should understand that the cash advance interest rate is likely to be very high. It is going to be even higher than the interest rate on regular purchases made on the credit card. Therefore, you should think very carefully before you jump into a cash advance.
The cash you receive from the card if you do decide to go this route may be used for any number of emergency purchases, but understand that it is not free money in any sense of the word. It is very expensive money that you need to prepare to pay back.
Look At Government Assistance
A final option for those desperate to cover their basic emergency needs is to ask for government assistance. There are a number of programs throughout Australia that can help you cover things like food and nutrition for your family. Many people find it a tad embarrassing to be on these programs, and you probably find yourself in those shoes as well. If that is the case, then you certainly want to minimize the amount of time that you are in this boat. Pull on the government purse strings only if you find yourself without any other viable options. That is how the vast majority of people feel about it.