Life can be unexpected and if your car breaks down or other unforeseen circumstances require you to get quick access to cash, you need a game plan. Quick cash loans come in all shapes and sizes, but depending on how dire your situation is, not all of them are safe options. The most common problem with cash advance lenders, for example, is that they charge high interest rates that can force you to get further into debt.
The first and most responsible step are to ask friends and family for money. Though it can feel awkward to take a loan from someone that you know, it makes more sense financially to deal with someone you can trust. If you feel that you’re not comfortable with taking money from a family member, then draw up a repayment plan that promises you will pay back the amount in certain installments.
Of course, asking people you know for money doesn’t always work, especially when everyone else is strapped for cash. Quick cash loans can come in the form of payday loans and if you know you can pay back the amount you owe from your next paycheck, then the interest rates won’t seem so exorbitant. Always borrow payday loans responsibly as not being able to pay back the borrowed amount can have a snowball effect and push you further into debt.
If you have a good credit score, then you have more options available to you. For example, credit unions and banks can give you a decent loan without forcing you to use your home as collateral. In addition, a good credit score also allows you to negotiate interest rates. If all else fails, get approved for a credit card as you can withdraw cash from your credit card. However, that should be your last option as interest rates can be as high as 25%.