What Are Your Quick Cash Options?
Posted on: 18 June 2015
If you've recently fallen behind on important bills -- like your mortgage, utilities, or student loan payments -- you may be looking for quick sources of cash to help you get caught up before you begin receiving nonpayment notices or interruptions in service. And while you're probably already aware that payday loans exist, you may be reluctant to pay high interest rates on such a short-term loan (or afraid of finding yourself caught in an endless cycle of payday loan renewals). Fortunately, there are a number of ways you can catch up without digging yourself into further debt. Read on to learn more about your quick and cheap cash options.
401(k) loans
If you've taken advantage of your employer's 401(k) retirement plan, you likely already have a sum of money set aside for future use. However, you may be reluctant to incur the taxes and other penalties that will result from taking a withdrawal from your retirement plan (if your employer even permits you to withdraw funds while you're still working). One option available at many employers is the 401(k) loan, which allows you to borrow against the present balance of funds without actually withdrawing from your account. You'll pay a small fee for this service, and may not qualify for your employer's matching funds while you're in the repayment process, but the interest you pay on this loan is payable to yourself -- not a bank.
Online paycheck advances
If you think the only way to receive a quick cash advance on your paycheck is to pay exorbitant interest rates or drive to a seedy part of town, think again. There are now a number of electronic applications and websites that will provide you with an advance on funds you've already earned, but haven't yet received -- charging relatively little in interest or even, in some cases, requesting only a tip. These apps will require you to input certain information about your employer, your weekly pay, and your bank accounts. After you've been approved for a loan, funds will be electronically transferred to your bank account. At the end of the loan and after you've received your paycheck, these funds (plus any interest charged) will be transferred back out of your account.
Title loans
If you're cash-poor but car-rich, you may be able to leverage the equity in your vehicle by taking out a title loan. These car equity loans operate in a similar manner as payday advance loans, but in addition to providing proof of employment and hourly pay, you'll provide information on the year, make, and model of your vehicle. You'll then be able to borrow up to 30 to 50 percent of the blue book value for your vehicle. If you fail to repay this loan, the lender will repossess your vehicle and sell it at auction.
Title loans can be a good option if you have steady employment but need to take out a loan that totals more than a single paycheck or repay the loan over a longer period of time than is generally permitted for payday loans.
Scrap metal recycling
If you're not interested in borrowing money, one way to quickly raise money without selling plasma or auctioning off your household items on an internet site is to scour your home and garage for recyclable scrap metal. With the manufacturing industry now back in full swing, metal prices are higher than ever -- and whether you have pieces of leftover copper pipe from a remodel or even an entire scrap vehicle, you should be able to haul or tow these items to your local scrapyard for a quick cash payday. In some cases, scrapyards will even be willing to tow large metal items to the scrapyard themselves (simply reducing the amount you receive for these items by the cost of the tow).
There are many options available to you when you're short on cash and need money now. Just make sure you evaluate each option before deciding on the one that works best for you.
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