Research emergency resources

If you have an emergency and you need cash that is not available, you need to consider other resources. Weigh the pros and cons of each source.

Source

Pros

Cons

Friends or family

They already know you.
They may have resources you do not.
They may be more lenient with repayment.

You may have to swallow your pride.
They may keep track of or question your spending.
The arrangement could strain the relationship.

Credit Cards

Once you have them, they are convenient and easy to use.
They are accepted at most retailers and service providers.
You can charge now and pay later.

They often charge high interest rates.
They may have added fees for cash advances and late payments.
They are easy to abuse.

Traditional Loans

They often have better interest rates than other sources, if you have good credit history.
If you own a home, you can borrow against your home equity.

To get the best deal, you need to be established with bank.
They are not “fast cash.”
You risk losing your credit standing or home if you default.

Retirement savings

You might be able to take a loan from your retirement plan and pay it back.
Depending on your age, the type of account, and the purpose for the withdrawal, you might not have to pay penalties.

There are penalty fees for early withdrawals.
There are taxes on early withdrawals.
The amounts you can withdraw may be limited.
This is borrowing from your future, which can affect your ability to retire when and how you want.

Pay day loans and direct deposit advances

They offer quick cash.
It is a convenient transaction.
They do not require good credit history.

These often have very high interest rates.
Other fees could apply.
Inability to repay can lead to a cycle of payday loans.

Pawnshops and car title loans

They offer quick cash if you have something of value.
It’s a quick transaction.
They do not require good credit history.

The amounts offered for things you sell are often low.
There can be high interest rates with loans.
Other fees could apply.
Inability to repay can lead to a cycle of high interest and fees.

n certain emergencies, local, state or federal resources are available. Consider these services:

2-1-1 Links to an external site. — Call 2-1-1 or use the website (www.211.org) Links to an external site. to link to a variety of free services in your area including disaster relief, housing and food assistance or help with domestic abuse.
Benefits.gov Links to an external site. — Use this official site of the U.S. government, which includes 17 federal agencies, to identify your eligibility for benefits.
DisasterAssistance.gov Links to an external site. — Gain information about disaster relief from federal, state, local and private resources.
GovLoans.gov Links to an external site. — This free service links to loans for disaster relief, education, housing and veterans’ loans.
Ready.gov Links to an external site. — This national campaign aims to prepare you for natural disasters.
StudentLoans.gov Links to an external site. — Get help managing your student loans and changing your repayment plan.

Other options for making money include selling personal items (clothes, shoes, electronics or textbooks), getting a job or doing odd jobs, negotiating prices or driving for a ride-booking service.

You may need to tap several sources to make it through your situation. A lot depends on the amount of cash you need, when you need it and what you are willing to do to get it.

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