Investment

What You Need to Know Before Accepting Emergency Money

accepting emergency money

You have got some kind of emergency. Maybe your house needs serious repairs, or your mother is sick and needs some money for the hospital because she is uninsured. Emergencies come in all shapes and sizes. The point is that there is a time when you will sit and think, “I need emergency money now.” When that time comes, you will be willing to accept just about any source of emergency money.

However, emergency money is not free money, and it certainly is not always safe money. If you get it from the wrong source, then you could potentially be making things worse for yourself. You need to understand what you are getting yourself into before you accept the money.

To begin with, you need to know your options. No matter what anyone tells you or how dire the emergency is, you should always remember that you have options, and they are always more than one. So, what are your options?

Get Money from Family and Friends

For most of us, our families are the foundation upon which we base our readiness to go and explore the world. We go out into the world knowing that, if anything goes wrong, we always have a soft landing in our families. It only makes sense, therefore, that we should first consider getting emergency money from our closest relatives before we go looking for it outside. You will probably feel a lot more comfortable owing your family money than you would owing it to a total stranger.

Alternatively, you can consider borrowing money from your closest friends. Some of your friends might be closer to you than family, making them the right people to go to when you’re in trouble.

However, just because the emergency money is coming from close family and friends doesn’t mean you shouldn’t take it seriously. The best way to show these people that you appreciate their help is to pay them back in good time and in full. You can even add a layer of seriousness to it by getting it in writing and even working out such small details as the mode of payment and the payment period.

Personal Loans

You can also consider taking out a personal loan from a bank. This is another convenient way to get fast money when you’re in need of it. There are a few things to consider, however, when dealing with a bank. For starters, you should know that the bank will be concerned about your credit history. If you have bad credit, then this kind of emergency money is out of the question. Also, even if you have good credit, the bank might still take a while to approve your loan application. It might take a few days at best when you need the money right now.

Payday Loans

Payday loans are extremely convenient, being accessible easily and requiring no security at all. You can apply in a matter of minutes, often online, and get your loan application approved in less than an hour. You also don’t have to worry about credit checks if you have bad credit.

The downside to payday loans is that they are expensive when it comes to interest rates, so you should pay it back immediately you get your salary. Also, don’t take more than you can pay back.

About Ajeet Sharma

My Name is Ajeet Sharma Financial Blogger & Founder of Financegab.com. We are a personal finance blog dedicated to personal finance & financial planners. The main aim of this blog is to help people to informed financial decisions.
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