About 60 percent of Americans don’t have enough savings to cover a $1,000 emergency.

If you’re among these people, you’re certainly living on the knife-edge of financial uncertainty. If you lose your primary source of income today and run into an emergency tomorrow, you will be helpless. And if the emergency is a matter of life and death, such as need money to secure an ICU admission for your child, the worst can happen.

The good news? There are a couple of effective ways to raise emergency money fast.

Continue reading for more insight!

Take out a Payday Loan

Payday loans have a reputation for trapping borrowers into a debt cycle. They charge sky-high interest rates and the money must be repaid within a month.

However, when you’re in a major financial squeeze, these loans can be life-saving. Your application will be processed quickly. What’s more, payday loan lenders don’t check credit scores, meaning you can get the money even if your credit is in the red zone or you have no credit at all.

Before taking out a payday loan, though, it’s vital to research and find a lender with favorable terms and conditions. For instance, you can read this Check into Cash review to establish whether the lender is a good fit for your financial needs.

Get a Cash Advance From Your Bank

If you have a regular job and receive your salary through a commercial bank, you might qualify for a cash advance.

These advances are somewhat similar to payday loans because the bank will deduct the entire borrowed amount from the borrower’s next paycheck. But because cash advances are offered by commercial banks, interest rates are much lower.

Requirements for qualifying for a cash advance vary from bank to bank, but most banks will check your credit score. So if yours is bad or poor, your application for a cash advance might fall through, even if you have a steady income.

Another thing to keep in mind when going in for a cash advance is the approval timeframe might be longer than that of a payday loan. Banks are well-known to have bureaucratic loan approval processes. If you need money in the next hour or two, this might not be a good option for you.

Most credit card companies also offer a cash advance feature on their cards. If you have a credit card you haven’t maxed out, you can withdraw the balance. This, though, will attract a steep interest rate.

Pawn Some of Your Valuables

Pawning isn’t an attractive idea, and for good reason. No one wants to take a valuable item to a pawnshop only to receive a lowball offer.

Let’s say you have a $3,000 emergency. You also have a $4,000 Rolex, so you expect a pawnshop to lend you an amount that’s almost equal to the watch’s street value. To your surprise, the shop only offers your $1,000 – take it or leave it!

Well, that’s how pawnshops work, but when you’re in need of emergency money fast, they can really get you out of a jam.

Because they have a reputation for lowballing clients, your best strategy is to show up with assets with a collective value that’s at least twice or thrice the amount of money you want to borrow. You also want to ensure the items have a good market demand. If a pawnshop owner thinks an item will be difficult to sell, they will turn you down, regardless of the item’s value.

Tap Into Your Equity

If you own a home outright or the property’s value is greater than the mortgage balance, you could qualify for a home line of credit. This facility is usually offered by commercial banks, especially one where you’re already an active customer.

Bear in mind, though, that getting approved for a home line of credit can take a couple of days. Lenders will want to verify the property’s ownership details, as well as conduct an appraisal to determine its value.

If your emergency can wait for a few days, this option can be a good fit. You’ll receive a low-interest rate and plenty of time to repay the money.

Also, if you have a life insurance policy with a cash value and other living benefits, you might be able to borrow money against it. Matters dealing with life insurance can be complex, so be sure to consult your insurance agent before making a decision.

Sell Valuables You Don’t Need

The average American household has over 300,000 items!

While most of these items have little or no value, it’s possible that you’re in possession of valuable items you no longer need. Think of things like an old computer that’s still in perfect condition. Or that leather couch you stored away after buying new seats.

After identifying a couple of items you can do without, hold a yard sale. Your neighbors could snap up some items at competitive prices.

You can also sell the items on online platforms such as Craigslist.

Borrow From Family/Friends

We get it. Borrowing from a friend or relative means swallowing your pride. Nobody wants to be in this position.

But when you’re stuck between a rock and a hard place, most of your close friends and relatives will offer a helping hand. You just need to ask for their help.

And with the rise of social networking platforms such as WhatsApp, it’s easy to create a group that brings friends together for a quick fundraising mission.

You Can Get Emergency Money – Fast

In a perfect world, we would all have a nice amount of money saved up for rainy days. But this world is far from perfect. Living paycheck to paycheck is the order of life for most people.

Lucky for you, when it rains and you need emergency money, you can get it. Just take any of the steps fleshed out above.

Good luck and keep reading our blog for more helpful tips.

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