All too often, families and individuals find themselves in a financial situation that seems impossible. It may be the result of a medical emergency, a divorce, a car breaking down, or a home in need of repair. Whatever the situation, there are some alternatives when people run into money problems.
Use A Credit Card
If you are like most people, you will have at least one credit card that you keep in case of an emergency. If you have a car that is in desperate need of repair or a plumbing problem in your home, you could opt to put it on your emergency credit card. Just be sure to get it paid off as soon as possible.
Conventional Bank Loan
If you have the time, you could opt to borrow from your bank. You will have to go through a fairly lengthy process where the bank will carefully examine your entire financial history. If you are deemed a credit risk, you will be declined for a loan. Obtaining a conventional bank loan may take several weeks.
Individuals with a steady job can always borrow against their paycheck. Payday loans are short-term loans that are normally taken out for smaller amounts of money. If you need a few hundred dollars and think you will be able to pay it back soon, this could be a good option.
Home Equity Loan/Second Mortgage
If you are a homeowner and have plenty of equity in your home, you can use that equity to borrow money. These types of loans are a little easier to obtain than a conventional loan but still require a background and credit check by the lender.
Car Title Loans
For those who own cars, there are car title loans. These are much easier to obtain than conventional bank loans since they are secured by collateral. For example, Embassy Loans of Florida has offered auto title loans to tens of thousands of satisfied customers. The process is easy. Applicants fill out an application, prove they own the car, present the title, have the car appraised, and soon after receive the payout of their loan. Since the loan is secured by the vehicle’s title, there is no need for credit and background checks. Car title loans are usually completed within an hour of filling out the application.
If you find yourself in the midst of a financial emergency, remember that there are several alternatives out there that can help.