Did you know nearly 80% of the American working force lives paycheck to paycheck? This is a systemic problem in our society that needs to change. However, that will take time and no small amount of effort.
So what do you do in the meantime if you need money sooner rather than later? What can you do when there’s more month than money?
Your best bet is to look into your finance options. But tread carefully here, as you don’t want to make your financial situation worse.
We’re here to help. Keep reading for your top five options.
1. Take Out a Personal Loan
If you have decent credit, you may be able to take out a traditional personal loan through your bank. However, most unsecured personal loans, even with good credit, come with higher interest rates.
If you plan to pay off the loan within a few months, this isn’t a big deal. However, if you hold onto the loan for several years, you’ll end up paying hundreds of dollars toward credit alone.
2. Use a Credit Card
If you don’t want to apply for another line of credit, you could use your credit card for the funding you need. You can either charge the money straight to the card or take out a cash advance, assuming you have room on it.
However, credit cards have exceedingly high interest rates. There are also additional charges for taking out a cash advance. This should only be used as a last resort.
3. Get a Bad Credit Loan
If you have bad credit but still require a loan, you’re not without finance options. There are companies that cater specifically to people in your situation. These smaller, short-term loans can be life-savers.
Check out your options for bad credit loans to see if they are an appropriate solution for your needs.
4. Take Out a Title Loan
Other finance options include title loans. As the name suggests, these loans provide funding using the title of your car as collateral. Should you fail to pay the loan back or make payments, the bank has the legal authority to repossess your vehicle.
This is a good option for people with poor credit, though it does carry extra risks.
5. Get a Loan From a Friend or Family Member
Finally, if you have friends or family members who have financial security, it may be worth it to approach them for help. You can tell them about your financial needs and ask if they’d be willing to extend a loan to you out of their own pocket.
If you go this route, make it clear that you’ll respect their decision either way. It’s also important that they know you’re taking their contribution seriously. Present a repayment plan to them so they know you’ll make paying them back a top priority.
Looking for More Finance Options and Advice?
We know how easy it is to fall between a rock and a hard place financially. As noted above, most Americans live paycheck to paycheck – all it takes is one financial emergency to throw things out of sync.
If you’re looking for more information and advice about finance options or finance in general, we can help. Be sure to check out some of our other articles before you go.