The future is full of unpredictable events and it is impossible for anyone of us to know what’s coming next? An unexpected financial crisis is something that is both heart-shattering and mind-boggling and one needs to have patience and courage to deal with them. You just lost your job, any family member got sick, car’s transmission breakdown, and so on and on. Whatever the situation, you need to have cash in order to get rid of such situations.
Most people undergoing such miserable situations get panic-stricken and end up taking a decision that is not in favour of them. Fortunately, there are certain ways that can help you in resolving your financial issues, but you have to figure out which one fits your requirement or which one is safer for you. There are many lenders who provide loans to people who are in urgent need of cash. Now, just you have read the sentence; don’t just close the page and start searching for lenders without reading the entire content. In order to make the most of these options available, you need to understand all about them effectively.
Here, in this blog, we have prepared a list of all the options available for you during the time of emergency. So let us have a look at them.
Different ways to get financial support during the time of emergency
- Go for a payday loan
It is one of the most popular types of short term loans that people opt for during the time of any sudden financial crisis. Basically, in payday loans, the lender can provide you with the loan within a few hours of approval, and you will have to pay the debt off after 30 days on your next pay or salary day. While applying for payday loans in Ireland, keep one thing in mind that the interest rate charged on such loans are comparatively higher than other typical loans. So, if you miss the repayment deadline, the interest will keep on adding up and you will have to pay a heavy amount in the end. Therefore, before applying for this loan, make sure that you are ready to take risk of high charge payment.
- Overdraft loans can be a great helper
Getting an overdraft loan can be really helpful in a situation where you are in a need of urgent cash. For those who don’t know much about this, let us understand it a bit more. Overdraft loans are basically a type of debt that any bank or credit unions provide to their lenders during any unfavourable situations. In this type of loan, the bank or credit union agrees to allow the borrower to use the money to a certain limit that is set by discussing with the bank officials. Well, as this is a form of debt, you will have to repay the loan along with the interest. However, there is one thing you keep in mind that you might or might not be allowed to write a check for cash, but you will be able to pay all your bills via your debit card. Overdraft loans are perfect for people who are in need of urgent cash.
- Home equity loans can be a good choice
If you are in a requirement of a bit large amount of money, then you can go for home equity loans. In this loan, the borrower is able to secure the loan against the equity of their home. Well, there are many benefits of taking a home equity loan – the first is as the loan is secured, the borrower can expect a lower rate of interest and even the interest is tax deductible. Secondly, these loans are long term loans which mean that you will have multiple years to complete the debt. However, make sure that you are able to complete the loan on time, or else you could be on the verge of losing your most valuable asset i.e. your home.
- Why not Pawnshop loans
When you get in touch with a pawnbroker, you can expect that you won’t be facing many questions before getting the money. The only thing that the broker will be concerned about is the valuable asset that you provide as security. The asset can be anything like any of expensive jewellery, antique or expensive gadget or any other luxurious item. Getting a loan from a pawnbroker is comparatively easier than getting from any street banks but they can charge a higher rate of interest. Therefore, see all the aspects before going for the loan. If you are not able to find any lender for a loan, then you can resort to pawnshop loans.
- Credit card advance
Most of the credit card companies provide with a cash advance feature which means that you can borrow cash that is against your credit card limit. Well, if the situation in which you are stuck is really tensed and you need quick cash within one or two days, then you can go for a credit card advance. This is something similar to that of taking out of money from an ATM using the debit card. The only difference here is that the cash will come from your credit card limit and you will have to pay the money back along with the interest.
Well, this was pretty much! You can go for any of the options mentioned above as per your requirement. Whatever you choose, make sure that you have a clear understanding of the loan or debt.