When people need money quickly, it is not likely that help will come from a bank or traditional lender. The application is a few pages long, the approval can take up to a week or more, and processing can only happen during regular business hours on Monday through Friday. The ideal situation is having money in a savings account for just such occasions. It can be accessed with a debit card at an automatic teller machine (ATM). A valid credit card that is not maxed out can also be a solution because a cash advance is possible. Many people lack the discipline to save money, or fail to think ahead to plan for emergencies.
There are other solutions available in an emergency. Borrowing money from a friend or family member is the next best thing to having the money in a savings account. The interest rates are low, if interest is charged at all. Money can be available fast, and payment arrangements tend to be flexible. Think carefully before asking someone for a loan. It can get in the way of a relationship, if paying it back becomes a problem.
Utilizing a non-traditional lender provides more options, especially if people have a less than perfect credit history. Applications are short, and approval is easily granted. A title loan provides fast cash in exchange for the title to a vehicle or property. The title is collateral while the loan is being paid back. If payments are seriously delinquent, there is a risk of losing the vehicle or property. Be sure to calculate total costs and be confident payments will be made in time and in full.
Short-term loans are available for six to twelve months. The interest rate will be higher than that charged by a traditional lender, but the money will be available faster. Limits vary depending on the lending company, but are typically around two to three thousand dollars. Fixed payments are due monthly, with heavy penalties for late payments. Payday loans are another option that should only be used as a last resort. The interest rates are the highest of any other type of legal loan, and penalties for late payments are exorbitant. Many people get stuck in ever-increasing debt when they take out a payday loan. Those in need of emergency cash can click here for more information regarding possible options.