Where Does the Money Come From When You Have an Emergency?

In the modern world, saving is not the norm. In a recent study is was shown that 69% of Americans have less than $1000 in savings. Many have no savings and are, in fact, in debt that they’ll never be able to pay off.

This situation occurs for many reasons, but this doesn’t change the fact that in the event of an emergency, people with high debt and/or little savings will find it very difficult to find the money they need. This might include a medical emergency, a vital repair in the home, or an important trip across the country. Whatever your personal needs, there are reliable ways to get the money you need, no matter your means. Here are a few.

Use Equity. It sometimes surprising how even people who have equity don’t have a firm grasp of what it is, and what it can do. Let’s say you own a house and a car. You haven’t paid them off completely just yet, but you’ve been making steady payments for four years in both cases. That portion of your car that is paid off represents your ownership stake. If that car or home were to be sold, you would get that money back as cash. This is what equity is. But there is another cool thing equity can do. You can use it as collateral to get a loan. With houses, this is called a home equity loan. With cars, it is called a title loan. Title loans in Kansas City, for example, will allow you to borrow up to the limit of equity you hold in your car. When you pay the loan back, you get your equity back. These loans are normally short term, and the funds arrive quickly in your bank account. It’s a great way to get fast cash for people who own stuff.

Use the Internet. There are thousands of lenders online, in mobile apps, and on one of the developing blockchains. These lenders have introduced a great deal of disruption into the lending industry, because all of the competition drives down costs and improves rates for borrowers. There is a lender for every kind of person, with every level of credit health. As long as you look carefully and consider your options, you should be able to find a number of quality lenders that deal with people just like yourself.

Use Onsite Financing. If your goal is to buy a car, for example, you may be able to secure financing right onsite. Larger dealers and retailers often act as their own financial company, lending to their buyers with bringing in a middle man. It’s important to read the fine print on these loans and to make sure you can afford the payments and interest. But as convenience goes, this is one of the best ways to borrow money.

There are many ways to get money, beyond the traditional bank lending model. If the traditional route fails you, look at these options for getting money fast and on your own terms.