How to Access Emergency Cash Loans

Where do you turn to, in truly desperate emergency cases? How can you access a quick loan, that puts an end to your financial troubles? Today’s post explores 5 alternatives, including emergency cash loans, 401k withdrawals and investment cash-outs.

$2,000 emergency cash loans

They might not be the cheapest alternative for getting quick access to cash, but, often enough, they are your best bet. Sometimes, when you find yourself in financial hardship, your friends and family can’t help you, and your credit history is poor, your best bet is to apply for a quick $2,000 loan with a specialized institution. Nowadays, you can apply for emergency cash loans online, with nothing more than proof of income and a bank account. In most cases, you’ll be granted near instant access to your money, and you can also directly deposit the money back, when the time comes to repay the loan.

Investment cash-outs

If you have any investments you’ve made for dark days, well, those dark days have arrived and it’s time to cash in. Check out your investment portfolio and look for any financial instruments that have already matured or are approaching their maturity date. Anything along the lines of CDs, stocks, or bonds will work, and the good news is that, much like with emergency cash loans, investments will instantly pay out. However, on the downside, you might have to pay some fees associated with cashing out financial instruments before they reach their maturity date.

Friends, family, your support system

A great alternative to emergency cash loans comes from your circle of friends and family. On the upside, if they can help you out, you won’t have to pay any interest or fees for the money on loan. On the downside—well, there are plenty of downsides to this. Some people won’t let their near and dear ones go through times of trouble, out of a fear of burdening them with their hardship. Others, while possibly willing to do this, will not be able to get any money from friends or family, since they, too, might also be facing difficult situations. All in all, if it’s a matter of pride, but you think your loved ones can help, try asking for their help – their answer to your honesty might surprise you!

Life insurance

The debate on whether or not life insurance policies are sound savings instruments is complex. However, by and large, you can cash out a bit of your life insurance if you absolutely have to. Typically, most term life insurance policies will allow you to borrow up to 95 per cent of the policy’s total cash value. Yet think this option through really well before springing for it, since cashing in on term life insurance might leave you faced with tax debt. The money you take out from the policy is taxable, according to currently enforced laws, so only attempt this as a last resort of sorts.

401k

Now, taking money out of your 401k accounts really should be your very last resort. That’s because, no matter how much money you borrow or how badly you need it, you’ll end up owing the 10% penalty. Also, the actual borrowing process is complex: first of all, you need to prove that you are really experiencing financial difficulties, that the situation is beyond your control, and that you’ve got no other way to address it. You also need to explain that, should you fall further into difficulties, it would be very difficult for you to recover. You can withdraw money from 401k accounts in the event of a funeral, home foreclosure, eviction, medical expenses, or college tuition for first degree relatives.

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