Don’t Go into Debt When Disaster Strikes: Viable Money Sources to Consider When You’re In a Bind
Nearly everyone faces financial problems at one time or another. An unexpected trip to the hospital, car repair bills, and a sudden loss of income are all examples of things that can pop up out of nowhere to leave you short of funds. When these unexpected financial crises occur, one of the most important things to remember is not to panic. There is no need to make things worse by borrowing money from a shady lender. If you are facing a financial crunch, here is a look at the best ways that you can raise money when you are in a bind.
Selling Unused Items
One of the first things you should do when you are in a financial crisis is to sell off the things that you don’t need anymore. The average American home is filled with items that are never used, and that can be worth a good deal of cash. There are likely plenty of items in your home that you never use—but someone else would pay money for it. Therefore, start your search for funds by putting the things you no longer need up for sale on sites like eBay and craigslist.
Second Mortgage
If you own your own home, then you have a huge asset that always assures that you can weather even the most severe financial storms. When you face a huge expense that you cannot afford, you should look into lenders that offer generous terms on second mortgages. If you choose to take out a second mortgage, it is always best to consult a financial professional to be sure this is the best fix to your problem. If you miscalculate or hastily decide to take out a second mortgage, it could have even worse effects on your financial future than a temporary lack of funds.
Look to Family and Friends
When you are in need of quick cash, one of the places you can turn is to the people who love you most. Your family and friends will always be there to help you if they can afford to do so. One of the best things about borrowing from family and friends is that you can borrow money from them without having to pay excessive interest rates. Be warned that borrowing money can become a touchy subject when things don’t go as planned. Even though you are borrowing from someone you know, it is a good idea to map out a payment plan so that the lender knows you are good for the money and won’t expect payments earlier than you can provide them.
Look for Extra Work
If a financial problem occurs, you can always work more to help make ends meet. You can start by looking for extra hours at your current job. If that is not possible, you can look for part-time jobs to earn the money that you need. Babysitting, dog walking and other similar tasks are a great way to make quick money in your own neighborhood. Many people overlook this option because they enjoy their downtime and don’t want to sacrifice their lifestyle by taking on more work. However, if you truly need money, then finding a temporary second job could be an easy fix to your financial issues.
No matter how grim your financial situation seems, don’t let it overwhelm you. Take time to draw out a plan, and you’ll come up with ideas to help you make things work. It is also wise to meet with a professional financial advisor before making any drastic changes. They can assess your lack of funds and help you find the best way to pay for your needs and resolve your current financial problems. The information for this article was provided by the professionals at myLumpsum.com, who provide lump sum payments for clients.
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Category: Debt
