6 ways to raise cash quickly
A medical emergency, job transfer, or a natural disaster, among other unanticipated expenses, leads to an urgent cash need. Unfortunately, when a financial majority strikes, most people are often unprepared. According to a U.S. Federal Reserve report, close to 40% of Americans have difficulty paying for emergency expenses. Read on for five ways to raise cash to settle urgent expenses.
1. Borrow from your family and friends
One of the easiest ways to raise money is by asking your family or friends for help. Requesting a family loan is convenient as you do not need credit to secure financing. Your family or friends are also likely to allow flexible repayment terms with low or no interest. However, while borrowing money from your loved ones is a quick fix, it could ruin your relationship if you do not pay back the loan promptly.
2. Apply for a payday loan
Payday loans are short-term loans, often due by your next payday. Lending companies do not perform a credit check, contributing to their short processing time. You could apply for e-transfer payday loans and get financing the same day. However, payday loans often attract high-interest rates, usually 400% APR, so you could pay double or more than you had borrowed.
3. Organize a yard sale
Holding a yard or garage sale is an effective way to declutter your home and raise money quickly. If you have valuable items lying around the house, you could consider selling them. Ensure that you put up a sign and advertise your yard sale on local newspapers, Facebook, Craigslist, or church bulletins to attract as many potential buyers as possible.
When pricing the items, you should keep in mind that buyers are likely to negotiate for lower prices. Be sure to price your valuables while giving room for negotiations, but do not set a very high price to avoid turning away potential buyers.
4. Request for a cash advance
If you are employed, you could consider requesting your employer for a payroll advance. You do not have to worry about high-interest rates because a payroll advance does not cost any fees. Cash advances are often paid through payroll deduction.
5. Get a side hustle
If you just lost your job or have plenty of extra time, you could consider taking on a part-time job. You could petsit, babysit, housesit, get online tasks from sites like Fivver, or work for companies such as Uber, TaskRabbit, or Lyft to earn additional income.
6. Cash some of your investments
If you have any investments in bonds or stocks, you could opt to cash them. This can help you get your hands on cash within a short period. With that being said, you will have to pay taxes on the money received once you cash your bonds or stocks, so it is crucial to liaise with your broker to determine which investment you should convert first. This will keep you from paying the highest taxes when liquidating your assets.
You do not have to panic during an emergency and need money fast. Hold a yard sale, borrow from friends and relatives, take out a payday loan, cash your investment, or start a side hustle to raise cash fast.