Cash Solutions When In Financial Trouble
There are number of circumstances that can put you in a financial bind. Maybe it is car repairs, a health issue, loss of income, or a significant unknown expense creeping up. Unfortunately, most are prepared for these circumstances, and thus, they have to resort to debt or other means of handling the situation that doesn’t exactly put the person in a good situation.
In order to prepare for unforeseen circumstances, you should do your best to accumulate several months worth of expenses in a cash emergency fund. Most people say 3-6 months worth of expenses; I would recommend even a year of cash reserves. If you have this, then you are in good shape and prepared for rough waters should you encounter them.
Having a strong emergency fund is always a sound financial practice, but if times really get tough and you need cash there are some solutions. Most solutions come with higher interest rates than traditional money sources, but the reality is that sometimes you need cash.
Credit cards can sometimes be useful if you need to get by temporarily and are out of cash. Additionally, there are other options as well.
Many people like to slam products such as payday loans and cash advances, but the reality is that there is a place in the financial world for these products.
Are they the ideal solution for most consumers? Not necessarily, but the people using them aren’t typically in ideal situations and circumstances.
If you use some of these alternative sources, you need to be sure to then pay off a loan or credit card and get back to square one. Once the tough circumstances pass, you should then work hard to get out of debt and beef up a real emergency fund.
Having money on hand can do wonders to prevent you from taking a step back in your financial walk, but if certain situations occur, well, there are additional options for you to meet your needs, even if less than ideal.