Most people are living from one paycheck to another. This is described as financial fragility and it affects the majority of Americans. Summed up it means the inability to cover an unexpected emergency expense of between $1000-2000.
What would you do if you or a family member needed an emergency room visit or operation? What if there was an automobile accident or necessary repair? A death in the family, reduced hours at work, and even coming down with the flu can all be devastating for the financial situation of a person who is barely making ends meet.
This is an increasingly common problem even amongst those who are considered middle class. Fortunately, it is possible to come up with an extra $2,000 if people know where to look and are willing to be a little creative.
Finding a Loan
Most people are familiar with the process of finding and securing a loan. They’ve had to do it when they wanted to purchase a home or car and probably have several credit card accounts. But if there is a financial emergency it can be difficult to get money quickly, especially if your credit has taken a hit. Fortunately, there are many companies that specialize in sourcing loans quickly, even for those with less than stellar credit.
For many years, people thought the only option was a payday loan. These loans quickly racked up a bad reputation for the way many institutions were handling them. Companies like Blue Trust Loans evolved to create a viable alternative for people who needed money quickly and who were unable to go through a more traditional lender.
If you aren’t eligible for a loan from traditional or alternative lenders, you may want to consider having your own personal liquidation sale. There are several ways to quickly sell high-value goods you may have in your home. Some people think the only way to do this is a yard sale, but those take time to plan and people tend to only make a purchase if the price is far below what an item is worth.
The two quickest ways to liquidate assets are through pawn shops and companies that purchase gold and silver. Many pawn shops will purchase electronics, jewelry, weapons, and tools for a flat rate. These are in demand items which they can resell quickly, which means they are willing to pay a fair price for them. Those businesses which specialize in gold and silver will pay per ounce based on the market value of the metal that day. However, they only pay for the metal, not the gems which may be attached to it.
Friends and Family
This is often the last resort for people who are struggling financially because they don’t want to admit to those they are closest to that they are struggling. It is also possible that your friends and family are also struggling and simply don’t have the disposable cash to offer assistance but that doesn’t mean they don’t want to help.
If you have a large enough network, you may be able to borrow smaller amounts from several people rather than locating one person with all the money you need. Think of it as crowdsourcing funds for your financial emergency. You could approach it just like a Kickstarter campaign which takes small investments from many people to reach their large goal.
If you have a little time and the emergency hasn’t limited your ability to work, you may be able to take advantage of the booming gig economy. There are many viable online careers such as graphic design and writing which pay workers quickly for individual assignments.
There are also local gig opportunities such as driving for Uber or a similar service, completing tasks on apps such as TaskRabbit. There are also companies that specialize in finding people temporary or gig jobs in person like Manpower.
If you find yourself in a situation where you aren’t sure how you would cover an expensive emergency situation, you’re not alone. Look for ways to build up a safety net while you can but if time runs out, the options above may help you make it through your financial emergency.