The Complete Guide That Makes Finding Emergency Cash a Breeze￼
Do you need to support overdue payments, medical expenses, or life changes? Use emergency cash to fund unanticipated financial distress.
Studies show that only 34% of the Canadian population has emergency funds. Unfortunately, not everyone can stash money for emergency cash. However, this shouldn’t mean you have to purge your finances all at once.
Want to know how you can get emergency funds for unanticipated events? Read on for a complete guide on finding emergency cash fast and easy.
1. Apply for a Part-Time Job
You can find many same-day-pay jobs looking for part-time workers. Applying for one allows you to earn extra cash in a short time. Most same-day-pay jobs fall under general labor, such as warehousing, packaging, and delivering.
You must have transferable skills before applying for freelance work. This refers to skills that allow you to support business operations even if you don’t fit the job description. Transferable skills include effective communication, initiative, and problem-solving abilities.
Search up same-day-pay jobs online to discover freelance work you can try. Ensure the reliability of the website to prevent fraud. Check the job description, requirements, and salary rate before submitting your application.
2. Sell Unwanted Clutter
Are you looking to deep clean your home and get rid of unwanted clutter? Consider opening a garage sale to earn extra cash. Some items that guarantee profit are clothes, electronics, and appliances.
Putting up these items for sale can give you more than a thousand dollars. You can use your earnings to support expenses, such as paying off your car or home repairs. Thus, start decluttering your home of items you no longer need.
Sell your items on different social media to extend your customer reach. There are electronic retailing platforms that follow a B2C transaction, too. It makes selling faster, easier, and more efficient.
However, be careful of scammers when selling online. You must give or deliver the item when you secure the full payment. Meet up with your client in a public and open area in Ontario to ensure safety.
3. Ask for Help From Loved Ones
You can borrow from a family or a friend if you need emergency money. No one wants to be in a family member or friend’s debt, but sometimes, the best thing to do is ask for help.
Inform the concerned family member or friend about your financial situation and why you need cash. It allows your family or friend to understand the urgency of your needs. You may also prepare a contract that covers the payment terms and conditions.
It must include the principal amount, interest rate, and repayment period. The contract must present the method and mode of payment, too. Doing so guarantees your will and ability to repay your debt.
Both parties must sign the contract before the disbursement of funds. You can refer to the agreement when conflicts arise. With this, ensure both parties get a copy of the contract.
4. Withdraw From Your Retirement Funds
Make an early withdrawal of your Registered Retirement Savings Plan for emergency money. It refers to a retirement plan in Canada. The RRSP allows withdrawal of funds anytime if not in a locked-in plan.
However, you must include the amount you obtained under your income. It subjects your withdrawal to withholding tax. With this, your employer deducts tax payments from your salary.
Although, there are specific conditions wherein you can make an early tax-free withdrawal. You must be a low-income earner, first-time home buyer, or returning student. Consider withdrawing your RRSP if your reason fits the stated conditions.
5. Use Your Credit Card
A cash advance is a good option for emergency funds. Credit card issuers allow cardholders to withdraw instant cash from their credit line. You can use it as a short-term solution to cover financial expenses.
Cash advance asks you to pay for transaction fees and annual percentage rates. However, it costs less than other loans. The average charge of a credit card issuer ranges from 19% to 29%.
Look for a credit card that offers better terms. Then, review the different fees they include for cash advance credit. Practice paying your credit card on time to prevent high accrual of interest.
Note that the application process often takes two weeks to complete. Although, you can opt for an online application if you want same-day approval.
6. Consider a Car Title Loan
Did you know that you can use your car to get emergency cash? Lending companies offer car title loans where your vehicle serves as collateral. The company registers a lien on your vehicle to secure it as collateral for the loan. When the loan is repaid the lien is removed immediately.
With this, you don’t need to surrender your vehicle to the lending company and you keep driving it.
A car title loan is the best option if you need instant cash, as the processing takes about an hour or more. Moreover, a good credit score or a guarantor is unnecessary for auto title loans. It makes the application process faster and easier.
Most car title loan companies offer favorable payback plans. Choose an installment payment schedule that best suits your needs. It allows you to enjoy flexible conditions and lower interest rates, too.
7. Ask for a Salary Advance
Consider asking for a salary advance if you run out of options for emergency funds. Your employer allows to give you the whole or a percentage of your paycheck ahead of payday. Getting a salary advance prevents you from paying extra fees.
However, an employer grants a salary advance if the employee provides a valid reason.
With this, ponder upon the entirety of your situation. Assess the weight of your reason and payment method. Learn more about the salary advance policy the company follows, too.
You can check the employee handbook, ask the human resource department, or go to your employer. Then, proceed to ask for a salary advance. You can create a letter or schedule an appointment with your manager to discuss your request.
Finding Emergency Cash on a Rainy Day
Not everyone has the luxury of having savings, but that shouldn’t stop you from getting vital emergency funds. Here are some of your options where you can get emergency cash.
Worried about the time it will take before you get your funds? A car title loan is your best option for instant cash. Reach us here at Fastaction!