Wealth Creation

Five Ways to Get Out of a Financial Emergency

There may be times when funding is not found readily around the corner. Money may not grow on trees but acquiring the money you need could be easier than you thought. When it feels like your finances may not stabilize, and you’re struck with a financial emergency, times may seem tough.
Here are just a few situations that might cause an unforeseen financial emergency:

  • Car accident that requires immediate payment for damages!
  • Broken car needs fixing to get to work!
  • Hospital bills for surgery or life-threatening accidents!
  • Paying off debt!
  • Paying off the house!
  • Paying for rent to avoid default!
  • Paying off a high ticket from police or the court!

All these situations may create a financial emergency that may require emergency funding. These situations could happen to anyone. But don’t feel like the situation is helpless. There are plenty of options out there to consider in order to pay off that financial emergency.
But with so many ways to pay off a debt, where should someone start. Not only are there five options for receiving emergency funding, there are plenty of tips and resources available to help make the most out of a bad financial situation!

1.    Sell Personal Items

When people think about selling stuff online, their first suggestion is maybe Amazon or eBay. Although these are some of the largest marketplaces to choose from, they are not the only online selling marketplaces!
In fact, the online marketplace landscape has diversified itself to support several niche online stores that host a variety of different departments. In fact, it has become easier than ever for someone to create their own marketable webpage and sell their items from an online store.
Although for those not looking to spend time making their own platform, there are so many ready-to-use online markets to establish oneself!
Have homemade crafts that someone is looking to sell? Check out Etsy! Looking to sell things locally without having to perform transactions online? Craigslist could be the answer! There are hundreds of mobile applications that people could use to sell their unique items—either online or within a certain area!
Selling online has never been easier or faster. Finding the right platform to sell from, online communities, and websites are simply a click away. Finding people that may be looking for what you’re selling is simply one option to make some extra money!

2.    Locate Odd Day Jobs

Just like selling items online, another way of getting emergency funding during a financial emergency is to use the skills that one has in order to apply themselves as a freelancer. There are plenty of online websites that could provide funding for odd jobs, as well as job board sites that provide local jobs around a specified area.
Another place to consider odd jobs are websites like Craigslist, where companies may require test subjects for surveys.
As far as mobile applications go, those who want to increase their funding to pay off a financial emergency without much hassle could join delivery services and driving services. Signing up for Lyft or working as a Grubhub driver could help someone earn fast money when it’s convenient for them!

3.    Consider a Payday Loan

For those looking for short-term loans to help with quick emergency financing, they should look at these two ways! The first way is through a payday loan.
A payday loan is a type of short-term loan. As far as short-term loans go, payday loans have some of the shortest terms. In fact, their typical repayment term ranges from two to four weeks.
Their availability is usually very prominent, payday lenders can be found in strip malls and heavily populated locations. Although payday loans are available through lenders operating out of storefronts, having an online platform has made payday loans even more convenient for emergency financing!
Because of these qualities, payday loans have been known to work best for people who need cash in a hurry. Not to mention that the entire inquiry process can be completed in a matter of minutes!
The amount a borrower may acquire depends on credit, employment, and income. Payday loan lenders tend to have high interest rates on loans. Payday loans must also be repaid by the borrowers next paycheck (hence the name), along with any accrued interest.
If a person does not pay off their loan by their next check, the rollover payments could keep the borrower in debt—if they just paid off their financial emergency, they could wind up even more stressed! Use payday loans with caution and always research payday lenders before picking one to work with!

4.    Consider Funding by Using a Car as Collateral

Using a car as collateral can be done through short term loans. As long as someone has the title of their car, this short-term loan option in emergency financing may be the right choice for them! With longer loan terms ranging from 12 to 24 months, this loan option is perfect for those looking for a larger loan amount that doesn’t have the riskiness found in a payday loan!
Car title loans can be acquired in storefronts, but some lenders offer loans through an online application form!
With their convenience, car title loans are great for those that need a financial emergency paid off as quickly as possible! With a few easy steps that could be completed through a phone, and minimal qualifications, a car title loan may be the answer for you!

5.    Airbnb

Homeowners looking to get emergency financing, could consider renting their living space with Airbnb. By providing their home as a place to stay the night, a homeowner could make some money to pay off that financial emergency.
Like other odd jobs found on the internet, this one may seem risky. Luckily, many organizations ensure legal contracts and other policies must be followed, and penalties may mean charging rude guests more money for violating terms!
Although these are not the only possible ways to get emergency financing, check out these options and consider combining a few of them to acquire quick funds to pay off that financial emergency!
Also check out how to get out of a financial bind through these three ways!