Things You Can Do With an Emergency Cash Loan
Things You Can Do With an Emergency Cash Loan
For most people, debt is a fact of life. At present, 8 in 10 Americans carry some kind of a debt. That is because in certain circumstances, taking out a loan might be the only alternative.
Emergency loans that are short term can be life savers in a number of situations when used judiciously.
Money woes can afflict anyone who does not have a nest egg or when things go wrong up to a point where an emergency fund becomes inadequate.
Here are some of the things you can do with an emergency cash loan.
Prevent Medical Debt
Changes in health insurance and increasing medical costs can easily place you in medical debt. You could find yourself unable to bounce back financially even while you recover medically after a trip to the doctor.
With the current employment rates slipping, it is possible to find yourself without a job because if you have to take extended leave due to any medical condition. This makes it important to take steps to prevent medical bills from racking up.
Take an emergency cash loan with minimal paperwork and quick cash disbursal to take care of those bills. However, remember to negotiate the medical bills and try to have them reduced as much as possible before paying up.
On an average, at least 70% of Americans are taken by surprise after looking at their medical bills. During a medical emergency, patients and loved ones are only focused on getting treated and recovering.
Medical costs are the last thing on their minds. This is something that clinics and hospitals take advantage of.
For instance, during labor pains, you would not question the charges. You would only insist upon yours and your baby’s health and safe delivery.
Even a normal delivery (and not a cesarean section) can leave you with a lot of unexpected co-pays and co-insurance fees.
It can be hard to be hit by these additional medical charges right when you have to pay for medications and other added expense. It becomes even more difficult when you are out of work because of your medical procedure.
An emergency cash loan can help you bounce back both financially and medically by taking care of your healthcare bills, drugs, doctor visits, and other related expenses.
The average medical expense in the United States for a regular procedure at the hospital is $2,500. You can easily get a loan of this amount or more to take care of your health and prevent any medical debt from racking up.
With that bill taken care of, you can pay attention to what really matters in life – you and your loved one’s health and happiness.
Avoid Late Fees and Interests
Credit cards are an essential part of daily living for most Americans. However, carrying high balances on multiple cards comes at a cost and it can be difficult to keep track of all of them.
You may accumulate high late fees and interests if you forget to make a note of changing terms, interest rates, and payment dates which is not good even in an economy with serious job growth.
Once the late fees, penalties and interest charges start, there is no end to them. Credit cards are famous for revolving debt where you pay just the minimum due and acquire high interest on the balance amount.
An emergency cash loan can get you on top of all your cards and stop the revolving balance trap, once and for all.
Another way credit card balances can become overwhelming is if you lose your job suddenly. With the current job market scenario, it can be difficult to find gainful employment quickly.
With no monthly income, you may do what most Americans do when facing the same situation. You will begin charging all your monthly expenses on the credit cards and only pay the minimum due to keep the account active.
Before you know it, you could be facing thousands in just interest, fines, and penalties. You can easily manage your monthly expenses while pay for your credit cards by taking up an emergency cash loan. These loans are designed to protect people like you from accumulating debt.
Without worrying about the money to pay for next month’s groceries, you can focus your attention on more pressing issues, like finding a well-paying job which there is an abundance of now.
Pay Back Borrowed Money
If you were in a recent emergency and chose to borrow from friends and family members, then you may be in more trouble than you think. Keeping your finances private is very important in today’s world.
By borrowing from people you know, you could end up making relationships very awkward if you are unable to pay back on time.
In fact, if you are anything like the average American who considers paying back loans from friends and family a priority, then you could end up making things very complicated for yourself, financially speaking.
An emergency cash loan could be just the thing that could help bail you out of embarrassment and keep things smooth among you and your loved ones. Paying back debt is the crucial first step for people still living with their parents.
An emergency cash loan could help you become independent easily and quickly by helping you with the extra cash you need to get started in this world and take advantage of all the new opportunities coming your way.
Repair Your Credit Score
Financial difficulty for however short a time period can take its toll on your credit score. A temporary hard time financially can have longer consequences on your credit card.
You may have quit your job to look after a terminally ill family member, or maybe you were in an accident and could not work for a long time.
All these situations can land you in a tight spot. You can easily fall back on making payments on your mortgage and car loan because you need the cash for more urgent and necessary needs, like monthly groceries.
Emergency cash loans can help you out in such situations. The loan amount can help you avoid messing up your credit score. It can also help you repair the damage done by catching up on payments. You can use the loan amount to pay off your other debt.
You can easily turn your credit score when you repay the emergency cash loan on time. On time repayments are reflected well on credit scores and you may be able to increase it by significant points.
A more positive credit report with average credit scores can help you get better interest rates and loan options in the future.
Deal With Business Debt
It can be difficult to navigate through business debt in a challenging economy. You could be facing collection calls and creditor mails on a daily basis.
Roughly, 50% of small businesses fail within their first five years, largely because of insufficient capital, poor credit arrangements and too much debt, according to a report by the US Small Business Administration.
With an emergency cash loan you would be able to pay debt much faster and perform required tasks instead of managing a host of debt collection calls and letters.
Paying off or dealing with a business debt can mean the difference between a business that struggles and one that succeeds.
Pay for Auto Repairs
Car repairs do not wait for monthly paychecks or a time when you may have surplus cash. Your automobile is a machine and needs its repairs if you want it to run in good condition.
In fact, certain repairs if not taken care of in time can make the car’s engine seize and render it useless or very expensive to repair. Cars car be expensive!
Hence, it is important that you take care of all car repairs as necessary and immediately. An emergency cash loan can help you cover all repair expenses and leave a little extra for cushion. It is critical to have a working car, especially if you depend upon it to commute to work.
Without access to public transportation and no money to spend on expensive cab fares, it can become difficult to reach work on time. This can lead to pay-cuts and other form of delay punishments.
Emergency cash loans can cover the cost of an expensive car repair or accident. In the event of an accident, even if your car has insurance, you will still be required to pay the deductible. This could easily range in hundreds of dollars.
Even, routine repairs like new brakes, new tires, new spark plugs or a new timing belt could set you back hundreds to thousands of dollars.
Without an emergency cash loan to pay for the repairs upfront, you may be forced to choose a repair provider who will approve you for payments. This can easily cost you 15% to 20% more as compared to a garage that has the best overall price and quality.
Pay for Monthly Expenses
You could face financial troubles even with gainful employment in the form of delayed paychecks. Your employer could back in terms of paying you.
If you are among the many hit with delayed paychecks then it can become difficult to pay for monthly expenses and keep up with loan and credit card payments. Trying to go two weeks without being paid can make your financial situation spiral out of control.
To stay on top of things, it is important that you consider an emergency cash loan which can be disbursed within hours. These loans can help you with significant amounts that can take care of all your expenses without racking late fines and penalties.
You could qualify for sunny loan terms with a good credit score. For instance, the lender may keep the interest rates low and not charge any loan processing or administration fee.
Best Emergency Cash Loans?
Emergency cash loans can come from a variety of places and is very essential to pay for numerous expenses. If you have a good credit score, then banks, credit unions, and other typical traditional financial institutions should be your first choice for getting a loan.
However, these may not be an alternative if you need cash immediately (within 48 hours) since they have long and time-consuming approval processes. Luckily, there are other emergency cash loan options such as car title loans.
These loans make use of the value of your car as collateral to offer a loan amount for a short duration of time. The loan amount can range from a couple hundreds to $25,000.
However, car title loans are heavily regulated by state governments and you need to understand the particular laws and limitations (if any) that apply to your state.
Other options for emergency cash loans include credit card charge, home equity loan, home equity line of credit, and signature installment loans. However, all these options come with their own set of drawbacks.
For instance, credit card charges can trap you in revolving debt and using your home equity is a high risk venture, since you risk losing your home in the event of loan default.
Make Life Happen Now
Life does not wait for anyone and sometimes you just want a loan to break free from the shackles of day-to-day life. Emergency loans can help you pay for that vacation you have been longing to go on for so long.
Or, you could pamper yourself with a cheap shopping spree with an emergency loan just until your next paycheck arrives.
There are a number of things that can make you lose control of your mental state. Rather than spiraling into depression or worse, anxiety, take up an emergency loan and head out with your friends. If you own a clear and lien-free title to your vehicle, you can get a car title loan is as less as 30 minutes.
These loans come with small monthly interest payments depending upon the loan amount and you get to use your car as normal. There are no prepayment penalties charged by most lenders which allow you to become debt-free whenever you want.
Furthermore, like with all other emergency cash loans, car title loans are also short-term. You do not have to worry about paying a loan for years, since these come up due within a few weeks.