How can I get cash in an emergency ?
We all like to be prepared for any emergency but sometimes, things do not always turn out as they plan. When an urgent bill comes about – and usually the medical type of bill where admission into ward is required, you may suddenly be caught with a cash call. How should you be prepared for such emergencies?
The first avenue would be to apply for yourself a credit card solely for emergency purposes. Do not use this card but carry it with you so that in the event you need to place a substantial deposit or if cash advance is needed, your available credit limit will take care of this burden. If you start using this credit card for your usual expenses, you may find yourself low on credit and being unable to afford the emergency cash call and hence, it is recommended that you set aside one credit card just for emergency.
Where possible, make sure that this credit card grants you the highest credit limit amongst your other credit cards. Firstly, the highest credit limit helps with the emergency whilst the lower credit limits on the other credit cards you are holding theoretically helps you to manage your finances better so that you do not overspend.
With credit cards, you can utilise the cash advance facility by withdrawing cash from any automated teller machine which is linked to the credit card account – usually Visa, Cirrus or Maestro. The amount available to you would be your available credit limit and in a way, this works out as if your credit limit is your cash balance at bank which you are now withdrawing from.
The other avenue for quick cash in an emergency may not be deemed as immediate cash but is probably the fastest after credit cards. This is where personal cash loans come into place. If you are an employed person with a stable income, you might want to consider getting an urgent personal cash loan which is usually disbursed into your banking account within a day. The usual documentation required includes proof of employment, salary slips and personal identification. Guarantors and security are not usually required. For many banks, the maximum cash loan which will be granted to you would be about 3 times the amount of your monthly salary.
Payday loans are also another avenue for quick cash in an emergency and this is usually secured by a post-dated cheque which includes the amount borrowed and the interest charges applicable. Just like the personal cash loans, approval and disbursement of the loan amount is usually done within 24 hours. You can apply for a payday loan online and will require an active banking account for the monies to be remitted to you.
However, intended borrowers must be cautioned that all three quick cash avenues discussed above come with probably the highest interest rates around amongst other loan options and that is understandable. The above facilities are all unsecured credit and / or loans and the financial institutions granting the above facilities to you would need to factor in the risk of such lending by imposing a higher interest rate chargeable so that the amount earned through the interest rate would help it to cover the non-performing loans. Bearing in mind the high interest rates chargeable and at times, additional processing or administrative fees involved, it would be prudent to analyse whether you really need to utilise these facilities. If it is an emergency, you truly may have no choice but it is of comfort knowing that you can turn to such facilities for quick cash during such times.
