What to do if you need to find money fast for an emergency
Whether it’s an unexpected bill or perhaps you simply need to cover the cost of a large repair and don’t have the funds to do so without impacting on your other expenses – it’s important to know what your options are. Here’s what to do if you need to find money fast for an emergency.
Option 1: Consider if the situation is a real emergency
Sometimes, things can feel more urgent than they necessarily are. If you can wait until payday to cover the cost, then do so. This avoids you having to take out credit or touching your savings at all.
Option 2: Use savings
We like to put away the pennies for those big expenses like holidays or decorating around the home, however savings should be your first port of call when it comes to finding money for an emergency. Once your expense has been covered, you can start to build up your savings again.
It’s always a good idea to look into a savings account that offers a decent interest rate, when you start to put money away again. Shop around before applying for a savings account that offers a higher rate of interest. Compare the Market or Go Compare are the best places to turn. It’s best to avoid an ISA because if you withdraw from these you lose the tax-benefits that come with them. You can read more about these here.
Option 3: Borrow from a friend or family member
However, not everybody has quick access to their savings or even has savings at all. So, it’s also worth speaking to a trusted friend or family member and asking if they can support you in a financial emergency. There won’t be any interest to pay when borrowing money from someone close to you and you can spread the cost of repayments. It’s important to remember that borrowing from friends or family can come with its own issues, so make sure you’re both clear on what your expectations are – when you’ll pay them back, what will happen if you’re not able to, and so on, before any money changes hands. Consider carefully and ensure everyone is happy before you accept their help.
Option 4: Sell the things you don’t need
You can find some of the cash for an emergency by selling items around your home that you don’t need. Electronics, old mobile phones and furniture can fetch a decent price on eBay or Facebook marketplace pages and you can sell enough to source the amount you need to cover that expense. While this may not be an immediate cash injection, it could be quick enough in some circumstances.
Option 5: Carefully borrow the amount you need on a short-term basis
Something out of our control could happen to any of us and while calling on savings or another option when you need money quickly, not all of us have the luxury of that choice. When you need money in an emergency and don’t have the savings or another means of covering it, loans that are instantly paid into your account can be a fast and flexible way to access money when you need it.
These are handy when an unexpected bill pops up or you’re struggling to cover an expense you hadn’t planned for. If a large bill arises and you’re worried that you won’t be able to cover this plus the cost of essentials for the month, you can apply for a short-term loan online and typically get the money the same day.
Alternatively, you could apply for a 0% interest credit card, although these are usually only granted to those who have a very good credit rating.
Before applying to borrow money it’s very important you carefully consider your situation. Will you be able to comfortably make the payments? How much interest will you be paying on top of the amount borrowed? And what is the repayment term? If you feel confident that you can answer these things and that the loan won’t have a detrimental impact on your finances, then it may be worth taking on for a financial emergency.
If you are experiencing a financial emergency, you may be worried about where to turn. If you don’t have savings in your account, follow the options above and cover that emergency expense with ease.