Getting an emergency cash loan is valid for three reasons (with reason #3 depending on your romantic state).
- Life or death situations.
- Education, e.g. tuition fee payment.
- Booking a flight to Bora-Bora to propose to the woman you love.
Other than these reasons, you must not, repeat MUST NOT get an emergency loan just because Burberry is having an end-of-season sale. Nor should you consider walking up to a loan shark for money. Don’t you dare!
Getting an emergency loan is not to be taken lightly as you can see especially when you have nothing left in your cash reserves to pay the loan back. It will bury you neck deep in interest rates and penalty fees, a sorry situation that may not see immediate relief in sight.
So then if one of these reasons is imminent, you can reasonably and justifiably say that you need to apply for an emergency cash loan.
- Get personal help first. Go to your parents, your favorite auntie or uncle, or your best friend. They are your line of defense when it comes to emergencies of a financial nature. Your parents will be hard-pressed to refuse you since it was they who spawned you into existing so you’ll get some form of financial help. Your relatives and friends are in a different league, however. If they know you as being trustworthy and honest, they will help but you may not get the full amount if you happen to borrow at a time when they also need money. Don’t feel bad. It happens. At least you tried and that’s all that matters.
- Try P2P lending. P2P or Peer-to-Peer lending is a form of lending between people that leaves banks and other financial institutions out of the picture. This eliminates the need for paying bank fees that can skyrocket depending on the state of the economy. The beauty of P2P is that individuals who are into this business can bid for your loan by offering minimum interest rates so you can basically decide which one takes your business according to who offers the lowest interest rate. Mind you, your credit history will be checked so you had better make sure your credit is good before the loan is approved. Want to give this a try? Here are some of the websites that offer P2P emergency loans:
- Virgin money
- Lending Club
- Seek the help of a credit union. Credit unions are like a cooperative of lenders for people who need cash and fast. Credit unions were created to serve rather than profit. This is a legitimate and government-regulated and recognized agency to score your emergency loan when you’d rather not talk to a bank. Check out the websites of the National Credit Union Association (NCUA) and the National Credit Union Share Insurance Fund (NCUSIF) for the requirements on getting an emergency loan approved. Remember that you need to honor your commitments to a credit union once your emergency loan has been approved.
- Charge it on your credit card. This is the last and final frontier if all else fails. Get ready to be bamboozled by interest rates and penalties when you so much as forget to add the 50 cents to complete your payment. If you go down this road, please make sure you have enough in your next paycheck to pay the full amount all at once.
There might be something you are missing that exists as a company benefit in your workplace. Have you ever looked into the possibility of taking out a company emergency loan? Ask the Human Resources Department if such a benefit exists for regular employees like you. The solution you seek just might be under your nose and you just haven’t been nosey enough to stick your business into it.