Different ways to finance an emergency purchase

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It is never pleasant to be caught short of cash – it can happen for all sorts of reasons.  An unexpected expense which is unavoidable is stressful even when you have back up savings.  Couple an emergency expense with a bank account balance which you are trying to keep in the red until pay day brings with it extra stress.   Here are some ways you can finance an emergency purchase if you are caught short:

Ask friends and family:  This could be the easiest and but also possibly the hardest way of borrowing money.  It is easy because there are (usually!) no special terms, usually no interest and it is all done informally.   However, you may feel like you are imposing yourself on your closest friends and family and taking advantage of their kindness.  You also might have mixed emotions about asking them – perhaps you don’t want to ask in case they feel awkward about it.  The informal nature of the loan can cause difficulties with your relationships if you can’t repay when promised.

Use your credit card: If you already have a credit card you can use this to make purchases.  You can also use a credit card to get cash from an ATM or over the counter (known as a cash advance).  You will be better off if you can use the card for your purchase rather than withdraw cash.  Interest rates charged by the credit card issuer are usually higher for cash advances and there may also be fees.

Get a short term loan: People who are employed who need cash to see them through until their next pay day might consider a pay day loan.  These types of loan can be difficult to understand.  A good website to start understanding pay day loans is www.Wonga.co.za.   This website is clear, understandable and the terms transparent which is refreshing.  Basically a pay day loan is a short term loan which usually lasts about 30 days.  The application process is quick and easy.  On the downside interest rates are generally higher than credit cards.  On the upside the terms of lending are set out very clearly by some lenders so you know exactly what you will be charged for the borrowing.

Overdraft: If you have an agreed overdraft facility with your bank this will probably be your first thought when you need money in an emergency.  While using an existing agreed overdraft can be sensible as it requires no application, is quick and the interest rates charged will usually be low (check first!) be wary of going overdrawn without authority from the bank.  The charges and interest charged for unauthorised overdrawn amounts can be astronomical.

Help from a charity or social fund:  Depending on your circumstances and the availability of help in your community you may be able to get financial help from a charity or social fund.   Many of these funds however take time to process a request.    They are worth bearing in mind though.  If they can’t help you out with cash for your emergency perhaps they can help you with some other essential living cost (such as food) – that way you could use the money you would have spent on food to fund your emergency.

Whenever you borrow money you should think about the consequences and your ability to repay the loan as and when it is due.   Some borrowing methods are easier than others and some are more expensive than others – you need to borrow from a source which is right for you.

Comments: 8

  1. Aleida August 4, 2013 at 11:43 am Reply

    So here’s the problem, I lately graduated college and also got my which you may. Clearly together with a brand new job and earnings comes more expenses. I’ve had two charge cards since i have was 18 (22 now), one for everyday purchases, one for problems and that i always pay entirely each month. I checked my credit rating the finish of This summer also it was around 772. Just today I asked for a rise on my small primary charge card since my limit is just $500 and i’m thinking about going and wish to place the travel arrangements around the card together with extra expenses since graduation. They elevated my limit $2000, but needed to check my scores to provide me any increase. My problem is which i should also purchase a vehicle soon and will need to finance about $6,000. Basically were to try to get financing inside a month or less will my score go lower considerably since i have am growing my credit a lot inside a short time? Will it be smart to carry off around the vehicle loan? Around the switch side can it be an advantage since it will likely be another type of loan and become another item to possess good payment history?

    I’m just really unclear about how credit ratings are calculated and would appreciate any help. Thanks!

  2. Shona August 9, 2013 at 7:21 pm Reply

    I have to begin a credit rating. I have to obtain a used vehicle funded however i don’t have any credit. The vehicle I own is accomplished for. I purchased it used really cheap a very long time ago.

    I have been frightened of obtaining a charge card. However I just have someone to begin a good credit rating after which I am completed with it. I will not touch them again. I’ll most likely apply it tiny problems, problems, i quickly close/cancel it after in regards to a year.

    What banks offer charge cards with low APR, that are ideal for someone much like me?

    I’d like to include that i’m 22 yrs old and i’m not getting my parents co-sign lol… I am a grownup. I truly have no need for them doing that.

  3. Alane October 12, 2013 at 1:38 am Reply

    I am 14, I have always known that in my adult existence I took it overseas. I have made the decision London in excess of one good reason. I am moving there throughout my senior year of highschool or my senior summer time (im tugging hard and doing extra to graduate when im a junior, in order to have my senior year to operate full-time to obtain the money to help make the initial move).I additionally get 24 months to go to college cost-free.hopefully likely to be attending school there to become medical examiner ( the folks on law and order that specify the way the person died). I’ll need 16,000 to help make the initial move, and that i already calculated in certain occasions to locate and acquire employment, get furniture, grociery shop, normal expenses and hasen. I understand there is lots more to become done- but I am just searching for top tips, suggestions that helped me to with this. I understand it is a pretty blan question- so anything you think can help me please share. Maybe some schools(i’ve got a 3.4), some flats, however , some advice! :)

    Thanks

    Dani

  4. Lowell October 14, 2013 at 10:22 pm Reply

    I’ve several payday financial loans and extremely can’t afford to pay for them. How do i eliminate them? Need assistance as soon as possible

  5. Kelley November 27, 2013 at 6:46 pm Reply

    I required financing in Texas for any payday loan three years ago. They finally got your hands on me now and i’m in Florida. They stated basically do not pay them there 1,200 dollars by 1 o clock a guarantee is going to be released in my arrest on two federal fraud charges. Is that this accurate and true? I figured the borrowed funds was compensated off after i was used in Iraq but appeartly it had not been. They stated I’ll be arrest and held for 4 months without any bond. Exactly what do I actually do? Is what they’re saying true?

  6. Tiara December 20, 2013 at 4:11 am Reply

    It is all about $30 for several groceries, fresh and frozen. Some places of worship distribute the meals monthly and there’s no earnings qualification.

  7. Gilbert April 29, 2014 at 12:12 pm Reply

    I’m searching for somewhere to maneuver to once i graduate college having a business/finance degree and I believed about South Usa, particularly South america. Now we all know South america has in regards to a 50% Black/Mulatto population, however that doesn’t really bother me since where I’m from it’s around 60% Black (St. Louis, Missouri). From what I’ve analyzed it appears such as the Southernmost three states in South america are mainly all Whitened of Italian/German/The spanish language origin which it’s a real beautiful area, a perfect location. And So I possess some questions regarding Brazil…

    Does South america have affirmative action or any kind of anti-Whitened guidelines?

    Does South america have welfare and all sorts of other social incentives which are for non-Whites (which obviously Whites purchase)?

    Can someone (like myself) obtain a good job in the loan industry? I’m considering investment banking and that i might work in the united states a couple of years before I intend to move. I believe Sao Paulo may well be a good area, since it’s the financial capital of South america, I’ve also heard that you will find lots of German companies based there and that i can speak German fairly well.

    Is property cheap? Would be the Whitened towns lower there safe? I’ve heard the cops are extremely corrupt so I’m wondering relating to this. Are also taxes low for that middle/upper middle-class in comparison to USA/Europe?

    I suppose my last real question is if Portuguese is a straightforward language to understand? I’ve heard that it is just as simple as The spanish language. May be the Brazilian Portuguese exactly the same through the country (no major dialects)? Do the German-Brazilians still speak German?

    Thanks men . Also, Confederados are .

  8. Gema May 13, 2014 at 4:58 pm Reply

    What’s the best legal way to earn money using my money, besides giving financial loans.

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