Sometimes you might need a sum of money in the case of an emergency; for example, you or your loved one might require urgent medical attention or you need to pay off your rent or your car has a blown transmission and needs replacement. Whatever the reason, cash on hand can be a lifesaver for you. Here are 5 options to consider if you are looking for cash in the case of any unforeseen or unexpected circumstances.
Quick Cash Loans
A quick cash loan or a payday loan is a viable option to consider, if you are in need of cash for an emergency. It is a sum of money borrowed at a higher interest rate and it is usually granted within a few hours. The benefit of a quick cash loan is that it does not involve credit or background checks; it only needs a proof of income and a bank account. The application process is extremely simple.
Sell Your Investments
Another option to consider is to cash out all of your investments. Although you will receive the money quickly, you will be unable to pay off the loan in the same manner as a quick cash loan. You can cash out your bonds, dividends, stocks, or CFDs, but you will be liable to pay a fee for withdrawing at an early period. Furthermore, you will need to consult a professional financial advisor on how to pay back the loan.
Turn to Your Friends or Relatives
If you are in dire need of urgent cash, you can ask for financial assistance from your very close friends, relatives or family members. Yes it will put both of you in an uncomfortable position, but you can smooth the process by informing them of your circumstances and how you would pay them back. You can write an agreement and even offer to pay back the original borrowed amount along with the interest as a sign of appreciation and sincerity.
Sell Your Stuff
Another effective way to receive quick cash in emergency situations is to consider selling old and unused items. Many people have things which they no longer need; they can sell them and earn a decent amount of money. For example, you could set up a yard sale or take high quality photographs of your used furniture, clothes, vintage collections, unused electronics, automobile, etc. and upload them on a sales website.
Withdraw Your Superannuation
This should be your last option and it should be considered, only after you have exhausted all the other options. If you have a serious emergency and are truly desperate, you can opt for withdrawing money from your superannuation fund.
However, you can only access the non-preserved portion of your superannuation fund, which means the money you have paid into the fund and you haven’t claimed a deduction on it. You will need to provide adequate proof of your circumstances; for example, in the case of a chronic illness, funeral expenses, house foreclosure, or eviction. You might be liable to pay a tax on the withdrawn amount.
Byron Simpson is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance cent.