The way the economy has been in recent years, it’s no surprise that many people who are employed still have difficulty making ends meet. Just last year a poll from Shelter and YouGov found that three million working families wouldn’t be able to pay their rent or mortgage for even a month if they lost their income.
Living paycheck to paycheck has become increasingly more common. Financial analysts point to the ever-rising housing costs as the main culprit. It’s left many families unable to save money for an emergency expense.When you have a short-term cash shortage paired with an unexpected expense it can create a substantial amount of financial strain. Ease the stress by using financial tools and tricks that offer quick access to funds.
Line of Credit Loan
One of the first options most people think of in a financial pinch is a loan. The issue here is that personal loans may be hard to get for a small loan amount, and you often have to have some sort of collateral to secure the loan.
Getting a line of credit for a small sum of money isn’t impossible. You just have to know where to look and do your research online. There are a number of lenders that offer small loans that are intended to be short-term. They’re a good alternative to a payday-style loan because the interest rate and payment terms are usually much better.
The one caveat with a line of credit loan is that you do have to be employed and meet minimum income requirements. As long as you meet those requirements you can get approved online and receive a small loan in a matter of days. Just be careful to pay the line of credit loan off ASAP.
Loans are one way to bridge the gap in your finances, but you can use other lines of credit strategies to keep financially afloat during tough times. Credit cards are one of those options.
If you already have a credit card that isn’t maxed out this is probably the first thing that came to mind. While it’s the simple solution, credit cards are often extremely costly because of the high-interest rates. A better option could be applying for a new credit card that offers a 0% interest introductory rate.
Most credit cards that offer this perk will do so for both purchases made in the first few months as well as balance transfers from another credit card. It’s essentially an interest-free loan, but only for a short period of time.
Crowdfunding is one of the latest ways to cover the cost of everything from a surgery to a field trip for your kids. Resources like GoFundMe allow people to set up a web page describing their needs or personal cause. Others can then donate and many platforms also link to social media sites for easy sharing.
You can set a goal amount, which is essentially the amount of money you need to cover your unexpected expenses. At anytime you can request a check payment or bank transfer of the money you’ve raised.
Pick Up Side Jobs
You may not get all the cash you need at once, but working side jobs in your free time can help ease the financial burden and need to borrow. Today there are countless websites that connect freelancers with people needing their services. A few worth looking into include:
- · PeoplePerHour – Offers both onsite and remote side jobs.
- · TaskRabbit – Features all kinds of offline odd jobs.
- · Upwork – The new combined effort of Elance and oDesk.
- · YunoJuno – Geared towards creative types.
- · Elevate – The place to find IT freelance gigs.
- · Vayable – London locals can act as tour guides for tourists.
Sell Your Stuff
There’s a good chance you have extra cash laying around your house, but it’s just not liquid yet. During tough financial times, you can make ends meet by selling items you already own. Focus on high-ticket items that are in demand, like electronics and gold jewelry. The goal is to make as much money selling as few items as possible.
Before holding a garage sale or going to a pawn shop, try selling your items online. Sites like eBay and Gumtree give you worldwide exposure and can help you get the best price for your worldly possessions.