A financial emergency of any kind can send you into a state of mild panic. It could be anything. Perhaps, you need to pay the rent or mortgage in the next few days but have maxed out on your credit cards. Perhaps your car insurance has expired and you don’t have the money to renew it. Perhaps you suddenly lost your job and don’t have the money to pay your basic living expenses. Perhaps you didn’t manage your money and you’ve run out of grocery money and the refrigerator is almost empty.
Besides the crisis itself, you also tend to berate yourself. Why can’t you get a better job? Why do you always forget to balance your checkbook? Why are you always struggling to come up with money? Here’s the thing: this train of thinking won’t help you. What will help you are some practical steps to correct course. Fortunately, your situation may not be as hopeless as you think. Here are some steps you can take to get back on your feet again:
1. Apply for a payday loan alternative.
Lenders like MaxLend.com can give you a personal loan based on your job. All you need is to provide proof of employment, proof of your right to work in the United States, and proof that you have a checking account. For instance, you could a bank deposit slip of your paycheck, a social security card, and a recent bank statement. You will then be eligible for up to $1250 and can pay the money back on an installment basis. Unlike a traditional bank loan, approval happens quickly and you will get the money you need fast.
2. Borrow from a number of people.
If you need more than a few hundred dollars to take care of your financial emergency, you could borrow money. Unless you know someone who has plenty of surplus cash available, it will usually work out best if you borrow a small amount from a number of people. However, you have to be sure that you are diligent about paying them back as you promised—otherwise, you will destroy a lot of friendships. In fact, if you have no idea how you are going to pay back the money, then it is better not to borrow any money at all.
3. Sell something online.
If you do manage to get a loan or borrow money, but it isn't enough, think of things that you can sell things online. Go around your house and list all the things that are in good condition that others might find useful. For instance, do you have exercise equipment that you quit using some time ago or did you buy books or CDs that are still in mint condition and that you can resell? You can advertise on auction sites and online classified sites. Take good pictures and provide an honest description. You might be surprised how many people want to buy your stuff.
4. Take on some temporary work.
If your financial emergency is due to a job loss, then applying for a cash loan is not going to work. While you can still ask family and friends for money, you will not have a way to pay them back. Additionally, even if, somehow, you could borrow the money you need, what will you do when the money is used up? If this is your situation and you know it will take some time to get another job in your field, then you should consider getting a job with a temporary agency. This will keep you afloat until your regular job hunting results in some success. According to Melissa Preddy in her article, 8 Ways to Find and Keep a Temporary Job, “Thousands of international, local and niche firms operate some 20,000 branch offices in the U.S. ...For others, run a Google search of the name of your nearest large city and the words “temporary agencies,” and you’ll likely pull up an agency directory and, often, a grass-roots message board or Web site where veteran 'temps' trade advice."
Although it may feel as if everything is falling apart, it’s important to stay calm and level-headed and take some practical steps to pull yourself out of the mess. This disaster, too, will pass. You will get back into the money. Naturally, you should scrimp and save after the money starts to flow again so that you will have the resources to handle a financial crisis in the future.