From time to time, everyone will need extra money to cover something unexpected. It may be an auto accident and you need to make repairs, a layoff or unexpected medical payments due. Whatever your particular situation, there are many ways to find, borrow or earn extra income.
Acquiring a loan
Taking out a loan gives you a fast way to acquire the funds you need and then pay back the amount in small, affordable monthly payments. If you have a good credit score and a mortgage you can contact that lender and apply for a personal loan through them. If however, your credit is less than what the bank will approve, taking out a loan with a traditional bank will be very difficult. Luckily, there are other resources available. Online installment loans through companies that aren’t as stringent with their requirement. Instead of basing a loan solely on your credit report, they take into account that you have a full-time job, are a natural citizen and have an active checking account. The payments are in line with your local bank, so they will remain small. Just make sure that you have the ability to repay the loan on time to avoid additional fees.
Pick Up a Side Hustle
Most people have something that they do well. Maybe your skill is carpentry, painting, crafts, lawn care, writing, or babysitting. Whatever skill, you can earn extra money by advertising either online, in the local paper or by word of mouth. Or, if you have a vacant room in your home, you can rent it out for a few months. Maybe you like working with people. Jobs such as a caregiver or a driver can help you reach financial stability while helping someone else. The point is to take what you do well and see if it’s something you can earn money from on the side.
Host a Garage Sale/Sell Items Online
Today with the internet at your disposal unloading extra items from around your home is easier than ever. There are many online sites that for a nominal fee you can list the things you want to sell. If it’s in good condition and something in high demand, chances are good that you can achieve a sale rather quickly. If the internet is not for you, try a good old-fashioned garage sale. Just make sure to price the items fair, without giving them away. Something that’s no longer of use to you may very well be what someone else needs. This is a great way to do your spring cleaning early and make the extra money you need to pay for your unexpected expense.
Take on a Second Job
If you have room in your schedule, taking on a second job, even if only for 6 months, can give you a few extra hundred dollars a month to help reduce your debt to free up money. Especially around the holidays, local stores are always in need of part-timers. And, in many cases, they ask you the hours you can work and create a schedule based on those time slots.
Taking Out a Loan From a Family Member
Most people shy away from borrowing from family. While it’s not ideal, it can help you get the money you need quickly, and in most cases, without any interest or penalties applied. Make sure that if you do decide to borrow from a family member that you treat it the same as any other loan and pay it back on time.
Reducing Your Debt
Of course, ultimately, the way to avoid a hardship in the future is to have a budget in place and open a savings account. The two will help you track your expenses, make payments on time and secure funds for a rainy day. A budget is an essential component of your existence. Without it you spend money without noticing, forget to make payments by their due date and end up having no reserves for an emergency.
Life has constant ups and downs. The way to avoid damaging your credit or doing without is to stick to a budget so that the extra money you have left over at the end of each month is there when you need it the most.