Blog

5 Steps To Take When You Need Extra Money Fast

Whether it’s an unexpected bill, a fine you have to pay, or when you need some extra cash for a special occasion, there are times when we need extra money and fast. If you don’t have savings or an ‘emergency fund’, you may be wondering how you can get access to extra cash when you really need it. Although it’s good to have some money as a backup, there are times we need to turn to other sources to get some extra money. Here we look at 5 steps to take when you need extra money fast, to help get you the money you need now, and make your future more financially secure.

Step 1: Look At Getting A Loan

A payday loan is a small amount loan that is ideal when you need a bit of extra cash fast. You can apply for a payday loan in person or online in a very short amount of time, and get the money you need within hours. Other short term loans include credit card advances, which allow you to get cash out on your credit card (if you have one) albeit at higher interest rates than normal.

You can also consider borrowing money from a friend or relative, provided that you intend to pay it back, and you clearly discuss terms, in order to avoid damaging the relationships.

Step 2: Look At Other Sources of Extra Income

If you need some extra money fast, a good way to get it without taking a loan is looking at sources of extra income. If you only need a little bit of extra money, taking up a few extra odd jobs such as cleaning, dog walking, babysitting or house sitting could provide you with all the extra cash you need.

You could also work as a consultant or freelancer outside of business hours if your job allows it, in order to make some extra income that you can use towards an emergency fund in the future.

Step 3: Larger Loans

If you are looking at needing a larger amount of money, your best option may be taking out a larger loan. If you have time, shop around for the best terms and interest rates so that you get the best deal. It’s important to know whether you will be able to pay the loan back, so make sure you do a budget to see how you will be able to pay the loan back over time based on your income and expenses.

If you have a home you own, you can also borrow money on the value or equity of your home, which is a much better option than others as the rates and terms are better. You still have to ensure you can pay back the loan however, because as you are using your home as collateral, if you fail to pay back the loan, you could lose your house.

Step 4: Buy On Financing

If the item you need cash for is something you are buying at a store, see if they have financing to help you manage the cost of the item, so that you can have it now and pay it off over time. This often is generally available for big ticket items like jewellery or cars, and allows a more manageable and affordable way to get the items you want now and pay them off gradually.

Step 5: Set Up Savings for Future Emergencies and Pay Back Loans

Once you have your emergency cash solution sorted, it’s important to work out how to pay a loan back if you took one out, and also to start building an emergency fund so that you will have money on hand in the future to cover any expected expenses. Draw up a realistic budget and take into account all your expenses and incomes and make sure these are balanced.

While it can be stressful to need money that you don’t have, and have to get it in a hurry, with these steps you can find the right financial solution.