When we’re travelling, we sometimes find ourselves in need of extra cash to pay deposits or emergency travel. But finding money in a pinch isn’t always as easy as it sounds. Many things in life require emergency funds, and it can be hard to know where to turn if you don’t have the savings to facilitate out-of-pocket or one-off expenses.
Cash Advance
Taking a cash advance from your credit card could be a good option in the face of an emergency. While it’s not ideal, if you have the funds available and no other option, this could work. However, you might get charged a higher rate on your cash advance, and interest might start accruing immediately, so this is something to be aware of when considering.
Fast Loan
If you have a good credit score, taking out a same-day loan or payday loan can work well in your favor. Some Online Loans can be processed and approved quickly, meaning you can get your funds in less than 24 hours.
It’s crucial to understand that these types of loans might carry higher interest rates, charges, or fees for arranging them in a timely manner. This awareness is key to being cautious and fully aware of the potential risks involved.
Friends and Family
If you’re in a tight financial squeeze, it could be a good idea to ask family and friends if they can help you financially. This option can help you get the money you need and pay it back without too much pressure, such as meeting monthly repayments or high-interest charges, especially if you can work out a more favorable arrangement with family or friends.
Borrow From Retirement Funds
While you cannot borrow from your IRA, you can borrow from your employer-matched 401(k). There will be a limit on how much you can borrow, and you do need to pay back anything you take out within 5 years. However, if you’re in a tight spot and need money fast, this can be a great option to consider.
Sell Something
If you have any high-value items you don’t need or you have a lot of items, you can sell them collectively to make a decent amount of money to cover what you need. Then, it can be worth selling some of your belongings, furniture, clothing, shoes, etc. Take the time to have a look at what you might have of value, such as jewelry, determine if you need it or want it, and then sell anything you no longer want to own to enable you to drum up funds before looking at other alternatives.
Cash Out Retirement Funds
You can cash out your entire retirement plan; however, you need to understand there will likely be penalties, which could be up to 10% of the money you withdraw, and you will be liable for paying tax on this sum, too. It’s important to note that cashing out retirement funds can significantly impact your future financial security as you reduce your retirement savings. You need to talk to your retirement plan provider to discuss your options for withdrawing the entirety of your retirement savings and the penalties and taxes you will likely pay for doing so, but in an emergency, this could be a preferred option over lending money.
Life Lovers Magazine® 