Staying in good financial standing is tricky. Even with a steady paycheck someone can find themselves in a jam when an unexpected cost comes up; not everyone is able to set aside money from their paycheck in case of an emergency.
When these situations occur, it’s important not to panic. There are several options people can keep in mind to try when they find themselves in a financial bind. Not every answer fixes every situation, but finding the best solution to help with a short-term crisis is possible.
5 Best Short-Term Financial Solutions
1. Consult with a Financial Expert
Researching online for the best short-term financial solutions can be time consuming and frustrating. There are lots of different answers out there, but they are usually buried under technical jargon or come with hidden fees that will negatively impact a person’s finances and credit in the long run. It doesn’t help that many people lack more than a basic understanding of financial literacy.
Instead of wasting time trying to come up with a solution, it is important to consult a financial expert. Discussing options with an accredited agency can offer alternatives that people hadn’t considered before. Banks often have someone on staff that works as a credit counselor, or there are agencies dedicated to assisting with debt management. By consulting with an expert a person can have the best information available to decide on the right short-term solution for their needs.
2. Taking Out a Short-Term Loan
For a quick financial solution, there are lending institutions that can help. Each has its own repayment plans with varying interest rates and terms and conditions, so it’s important to look at each loan provider to find the best fit depending on the financial situation.
To take care of a quick, short-term financial need, loans that are designed to assist people that need to make ends meet are ideal. For borrowing a larger amount of money, easy installment loans are a good choice. Installment loans are designed with longer repayment options and carry competitive interest rates. While they can still provide quick cash to help a person get out of a financial bind, they are better if a person needs something that can be paid back gradually.
3. Borrow Money from Friends or Relatives
Depending on a person’s situation, there’s one potential source for getting some quick cash without having to worry about interest rates or payback penalties: borrowing from friends and family. If a financial hardship is anticipated to be short-term, then asking for some assistance from someone can be helpful.
Being able to borrow from someone who is close allows a person to get cash quickly without accumulating new debt. This method of getting money is also helpful because a person can work out a repayment plan that has more flexibility built-in then if the money came from a professional lending service.
This option isn’t ideal for everyone though. If a person’s financial hardship last longer than anticipated then relationships can be strained when borrowed money isn’t paid back right away. Loved ones can also feel taken advantage of and undervalued if borrowing money becomes a regular habit.
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4. Alternative Ways to Increase Income
If no other option works, a person can always try to sell excess stuff for quick cash. Pawn shops have been a good option in the past when cash is needed quickly, but items usually aren’t given much worth at these places. Many websites have begun to spring up, which focus on helping people sell items quickly—and with financial money transferring services becoming more popular, it is easy to get needed cash quickly.
Aside from selling items, another option that can be considered is taking on some extra work. Asking a supervisor for more hours to help pay for an unexpected cost can be an option at times. Other times it might be better to find a temporary job to supplement income, or a freelance project by looking through classifieds.
5. Do Some Research
Finding the best short-term financial solution is different for everyone; depending on the need and a person’s employment situation—but there are plenty of options out there. With a little research, it can be easy to find a solution to assist with any short-term financial need.
Robert Martin has been working as a freelance writer for seven years, focusing on personal financing and debt management. He has consulted with some of the leading financial firms in the country. In addition to being interested in assisting people with their finances, he is an avid nature lover with camping and kayaking among his favorite hobbies.