There are times where we may need to borrow money quickly
When people need some additional money or need to make a large purchase, they use loans. Loans are incredibly common and over one third of Americans take out loans every year. They can help people buy homes, cars, pay for their education and a variety of other things. However, we don’t always know in advance when we may need some money.
Emergencies and accidents happen all the time and often require a lot of money to fix or make better. And with some stats showing that around 40% of Americans don’t have enough to cover a $400 emergency, there are times where we may need to borrow money quickly.
Thankfully, there are a couple of different fast ways to borrow money in a pinch, and this article is going to look at a few of them.
Ask Your Friends and Family
It’s not worth ruining a relationship for a bit of cash, so be careful when borrowing from friends
This might be tough for some people, but one of the better and cheaper ways to get money quickly is to ask friends or family members. Swallowing your pride and asking can be difficult for some, but it is a great way to get money without paying extremely high-interest rates. Of course, you will be better off only asking those who are very close to you, as others may not be willing to help.
However, if you borrow money from friends and family, be sure to pay them back in a reasonable amount of time. The last thing you want to do is take advantage of someone nice enough to help you out. It’s not worth ruining a relationship for a bit of cash, so always pay people back on time. In addition to that, you could even consider paying them back a little extra to show your appreciation.
Use Your Car or Home as Collateral
If you can’t borrow money from friends or family and don’t have enough time for a standard loan, you could consider using your home or car to borrow. Opening a HELOC (home equity line of credit) is very fast and can get you the money you need soon. Also, getting car title loans in Los Angeles or wherever you’re from is also quick and easy.
These involve you essentially borrowing money against the equity of your home or car. As you could imagine, it is quite risky to use your car or home as collateral. You need to be sure to make all of your payments on time and in full. If not, you run the risk of potentially losing your home or car. But if you know you can keep up with the payments they are a great option for getting money quickly.
Utilize Short Term or Payday Loans
While this shouldn’t be your first choice, it is certainly an option that nearly everybody has. There are likely many lenders in your local area that offer short term or payday loans. These loans are meant to hold you over for a few weeks or a month, or until you get paid next. They are incredibly convenient and quick but often come with incredibly high-interest rates. Even still, sometimes they might be the only option a person has.
Of course, it must also be mentioned many payday loans are predatory in nature and look to take advantage of borrowers. If something seems fishy or seems too good to be true, it is best to listen to your gut and avoid it. Whenever you borrow money, whether through a payday loan or not, be sure to know all the information and terms before signing anything.
Hopefully, this blog post has helped you learn some helpful methods of borrowing money quickly when you need it most.