It can be easy to think you have no access to money in an emergency situation. But there are avenues available to explore. You may not have the cash you need right now. However, from borrowing against something you own to asking your boss for an advance, here are some ideas.
Call-In You Life Insurance
Life insurance is an excellent product to have. It means you have peace of mind knowing that when you die, your loved ones will be taken care of. However, what most life insurance brokers forget to tell you is that you can access your insurance fund at any time. With a substantial amount in the pot, you can get yourself out of a sticky situation by requesting access to life insurance funds. Of course, it will be deducted from the total, but you can pay it back.
Borrow Against Collateral
One of the oldest ways to access quick money is by borrowing. Borrowing against collateral, such as at a pawnbroker, may not be the best way to go about it, but it will help in a pinch. You can do this if you are certain that you can repay what you borrow. Otherwise, the item(s) you put up for collateral becomes the legal property of the lender. Common collateral includes cars, jewelry, and even houses. Consider this a last resort, as repayment times are usually quick.
Create a Fund for Money in an Emergency
You can save yourself a lot of hassle by creating an emergency fund. Of course, with things so tight at the moment, putting some money away is hard. However, having that money to fall back on can be a Godsend. An emergency fund is separate from your savings. Savings can be difficult to access. Mindful money management should fill a second bank account. Try to save between 3 and 6 month’s worth of living expenses to have enough in case of financial shock.
Ask Your Boss for a Payday Advance
This is one of the harder ones to consider. Asking for an advance can be embarrassing, so most people won’t do it. There’s also the added fear of rejection, as your boss doesn’t have to say yes. However, most bosses will help you out if they are in the position to do so. And it doesn’t have to be embarrassing. Almost everyone finds themselves in a pinch now and then, and it will be confidential. However, it could be company policy not to do this, so don’t get your hopes up.
Emergency Loans from the Bank
Banks often use various tools and assessments to authorize a loan, but many actually have protocols in place for authorizing a loan in an emergency and offer emergency cash if your card is lost or stolen. However, there may also be a catch such as short term repayment dates attached. When in a situation, it can be tempting to turn to online lenders and payday loan services. But these come with excessive interest and can make your situation worse.
Summary
Cashing in your life insurance payments can help you access money in an emergency. Yet you can avoid this all together with an emergency fund. If you have no cash, your bank will consider an emergency loan. However, they might expect the money to be paid back in the near future.