5 Better Financial Options for Unexpected Emergencies

Financial and debt problems force people to turn to payday lenders. Some of the financial problems that people have are household bills, utilities, rent or mortgage and sometimes repayment for the money you owe to other people.

There are times that people get high-interest loans just to cover up emergencies just like if someone is being hospitalized and the insurance is not enough, quick cash are all they need and sometimes they need to make an instant decision. People should be aware that they can get personal loans without drying up their pockets and bank accounts. They just need to make a research online and ask their trusted people if they know someone or something that would lend them money with lower interest.

Aside from savings in the bank, people should have other resources to get some quick cash when in need. Below are their best financial options that they might want to consider to get cash loans when sudden and unexpected situation is turning its table:

Cash advances on credit cards

It offers about 30 percent APR, which is much cheaper compared to payday loans. There are credit card companies that offer help to people with financial problems and poor credit histories. People can also choose secured credit cards, which are tied up with savings accounts. The money from the account secures the amount charged on the card. If the consumer successfully used the secured card on a certain period of time, they can be a regular unsecured credit card user.

Credit counselling helps

A finance counsellor is needed so a consumer will be able to avoid the need to payday loan in the future. There are credit counselling services connected with the National Foundation for Credit Counselling that offer free money management help like debt management planning and budget counselling. Finance counsellors help people to develop a budget that they will be able to manage and help them to work out a debt repayment plan with creditors.

Borrowing from family or friends

You can also consider borrowing money from family members or close friends. In times of emergencies, they are the first people you can lean on and can help you avoid the possibility of going with payday loans. if they were able to lend you the money you need, talk to them about budget and the repayment plan. You can also discuss what will happen if the repayment is late. Another thing to talk about is about the written agreement, if both parties agree to it for clearer discussion and future reference.

Payroll advance

Some employers grant advance payroll to its employees, especially in times of emergencies. This is not actually a form of loan, there is not interest. Employees only take advance money from their payroll. Some companies also offer low-cost loans to workers during emergency situations, helping employees with spare cash.

Church-backed loans

There are churches that help their members with financial problems that offer small loans at very low rates. This move is to help the members to avoid turning to payday loans. Consumers can inquire their church if it is offering small emergency loans.

Remember, proper lifestyle could be the best solution to avoid borrowing money from someone or financial institutions. Learn how to assess and budget the money.

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