Emergencies come in many different shapes, sizes, and forms, and they’re emergencies because they are something you weren’t expecting. If you’re in crisis, then you’ve probably gotten behind on your bills or just need help keeping your head above water.
Even if you’re amazing at budgeting, sometimes things happen that can’t be helped. Below, you can find a few ways to get the money you need to get by when a crisis strikes.
Borrow Against Your Life Insurance
In times of extreme crises, many people have borrowed against their life insurance policies. Before you do that, make sure that you ask yourself a few questions. Is life insurance taxable? Can I pay this back over time? Is this the only way to get the money I need?
Borrowing against your life insurance should only be done if you have very little choice, especially if there are other options out there.
Work a Side Gig
If you’re not in immediate need of the money, then working a side gig to bring in extra income is preferable to almost everything else on this list. There are plenty of gigs that can be done online, from writer to author and from social media influencer to being a personal assistant.
If online work isn’t for you, try setting up a house sitting or dog walking service instead. You’d be surprised at how quickly you can get your bills caught up when you’re bringing in extra money.
If you’ve been laid off from your job because of something that was no fault of your own, you can apply for unemployment benefits to see you through until you can find more employment. You can apply online, in person, or over the phone in the state that you were last employed in.
Apply for a Personal Loan
From credit card consolidation to paying for an emergency, applying for a personal loan can be a temporary fix. In many cases, you can get the loan within one to two days of applying. There are also loans that you can apply for that help people with less than stellar credit as well.
Credit Card Advance
If your credit cards are still in good standing, you can get a credit card advance to tide you over or take care of an emergency. You want to be careful with these advances, however, as these advances come with high fees and high interest rates that might land you in more debt than you already were. If you can’t pay the payments on schedule, it’s possible that you’ll ruin your credit in the long run.
Refinance Your Mortgage
Refinancing your mortgage is another option that many choose when they have a crisis. Like borrowing against your life insurance, this is an option that you only want to take if you have no other choice unless you might be in a good position to sell your home, maybe to a cash buyer, so that you can liquidate your asset to pay off debt and find a cheaper place to live.
Borrow from Family or Friends
While probably the least desirable option on this list, you could try to borrow from family and friends when a crisis arises. You do need to be careful with this option, however, as money issues have split families and friendships many times before. It’s best if you have a contract written up and add interest as well as when you’ll make your payments to be on the safe side.
These are just a few of the ways that you can get the money you need during a crisis. Do your research and think long and hard about which option you choose, because either way the money has to be paid back.