Monday, July 01, 2013

How to Get Money for An Emergency

Recently I was discussing personal finance issues with a group of friends that happen to be single moms.  Most of them live from paycheck to paycheck.  When you are on such a tight budget, unexpected expenses can really send you into a deep hole.  See, what many people don't understand is this.  Not everyone has parent(s) that can help them financially when emergencies occur.  I still remember my old boss at Head Start.  She came from an upper class family.  Attended a prestigious boarding school, etc.  I went to her to see if she could suggest a resource for a family who's car had completely broke down she shocked me with her reply.  "Why can't they just use their emergency fund?  Can't they just ask their parents or other family members to pay for it?" I realized that there are a lot of people that really don't understand the poor.  Poor people don't have rich parents that can pay for their college tuition, car repairs, weddings, etc.  I know exactly how my clients felt.  I have lived through it.

When you face an financial emergency and you don't have many options, there are very few solutions.  Here's an example.  One year, I was on time with all my bills and very happy about it.  Then I went to the car and I had a flat.  Not the kind of flat that can be plugged.  I needed a new tire and I didn't have the money.  What can you do?

A few things you can do is sell some stuff on facebook, take some metal to a scrap yard, sell your jewelry or find a way to borrow the money.

Here's the problem with borrowing the money.

  • Not too many places make loans for small amounts of money.  
  • You need good credit.  
  • They usually require a job.  


I found one that does and I wanted to share it.  Rapid Title Loans  are available in the state of Florida.   They give you a cash loan that is not based on your credit, but on the equity of your car, your employment and your residence history.  The auto title loan application is pretty short.  Loans are for 12 months and the interest is as low as 1.50% per month as long as their is an outstanding balance.  I don't recommend that anyone take a loan unless it is absolutely necessary.  Debt is debt.  However, there are times that you need access to cash to pay for unexpected events like car repairs, home repairs or even loss of employment due to an accident.

I'm glad to know that these type of loans exist.  It is helpful to know there are resources that can help in case of an emergency.

2 comments:

EJ said...

It is so true, I have heard lots of people say things like" just use your emergency fund, borrow from family etc" Lucky for those people that can rely on family but real struggle street is so different. For people in that kind of position it is worth exploring ways they can make money fast and with a bit of creativity it can be done. We were about to go bankrupt just under a year ago and we are far from that position now due to some serious budgeting and entrepreneurial- like thinking. It can be done!

Carol Jennings said...

Unlike other types of financing, car title loans don't have a complicated or lengthy approval process. Since you are offering a form of collateral, car loans are relatively easy to qualify for, even if you don't have the best credit score. In fact, many lenders will provide car title loans without even checking your credit score or report. As long as you can show that you have a reliable source of income and a car worth more than the loan you are requesting, the lender will typically approve your loan application.

Car title loans are also an excellent option for borrowers who need their money immediately. As soon as you and the lender agree to the loan amount and terms, you can receive your cash quickly. In many cases, you can walk out of the lender's office with the money in hand on the day you apply for the loan.