Quick Money When You Need It
Unexpected expenses or a sudden change in income can be devasting! Chances are you can access quick cash through legitimate ways you’re not even aware of and that won’t sink your financial ship.
Option 1: Borrow from your 401K Plan
Most employer 401 k plans allow you to take out a loan up to $50,000 against your fund balance. You can get the money in less than a week and you pay an interest rate near the prime rate, which is now 5%. You pay the loan back through payroll deduction over time or all at once whenever you can. If you've been directly affected by Coronavirus, either personally or in a way that prevents you from working, you can take out more thanks to the CARES Act.
Option 2: Borrow from you life insurance policy
If you have a life insurance policy where you have accumulated some cash value, you can borrow up to 90% of that cash value in a day or so at the interest rate specified in your policy. The loan reduces your death benefit and cash value until you pay it back.
Option 3: Borrow from your stock portfolio
If you have a stock portfolio, you can quickly borrow up to half of the value of your stocks in a margin loan at a low interest rate. If the value of the stocks fall sharply, you may be hit with a margin call in which you have to put up additional cash or have the stock sold to pay off the loan.
Option 4: Borrow from family or friends
Asking for a personal loan is never fun - but the terms are usually unbeatable and family and friends usually have a real interest in making sure you survive crisis. Offer to pay an interest rate that’s lower than current rates and make sure to put your agreement into writing.
Option 5: Borrow from credit cards
Credit cards can help put you in control of financial crisis - fast cash and sometimes lots of it - but you need to be wary of the high interest that might accrue while you repay what you borrowed. Call your existing credit cards and ask for a 0% interest period and consider taking out a new card if you can get a 0% transfer offer. My affiliate, www.myguidetocreditcards.com , is a great place to comparison shop for credit cards that best fit your needs.
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As a personal finance expert, Jordan recognizes quality solutions, forming affiliate relationships to help improve people’s financial lives.