What To Do When You Need Cash Now

Do you need money, like, right now? Maybe some idiot rear-ended your car. Or maybe your dentist doesn’t offer direct billing and you just can’t ignore that toothache any longer. Whatever the case, don’t feel embarrassed, we’ve all been there. And we’ve learned a thing or two about accessing quick cash to cover unexpected expenses. So if your savings account is tapped out and you need money asap, you have a ton of options.

Borrow Money

This probably isn’t the best option for your overall financial health, but when time is of the essence it certainly is the quickest. So if it’s a super expensive emergency or it just can’t wait until payday, here are a few ways to get cash fast. Try to avoid taking on debt to finance an emergency and leave this as?a last resort.

Bank Loan?

Whenever possible, go through your own bank. Not only will you get a reasonable interest rate, but you’ll also get better service from someone you can trust. You’ve already built a relationship with them and they have access to almost all the necessary information to process your application. Better yet, you don’t even have to visit the branch. Almost every bank and credit union in Canada allows you to apply remotely through your online banking profile.

But before you sign on the dotted line, make sure you’re getting the right personal loan for you. Depending on what you need the money for, your bank may offer you an installment loan, a personal line of credit, or something as simple as overdraft protection on your checking account.

Payday Loan

If your credit score has seen better days, a traditional bank loan might not be in the cards for you. But don’t despair, you still have options. Private lenders fill the gap when the banks say no. Of course, they’ll hit you right where it hurts with crazy high interest rates so make sure you proceed with caution. If you’ve exhausted all other options, then a payday loan is probably the way to go. There are lots of options out there, so make sure you compare offers.?

Just don’t sign anything without reading the fine print and ask questions. These types of loans aren’t only high interest, they charge it daily between payments. If you’re late by even one day, you’re paying almost pure interest instead of principal. And the longer you have the loan, the more interest you pay. It’s not uncommon for these types of loans to cost you 2 to 3 times your original principle. Ouch!

Cash Advance

If you’ve got room on your credit card, you might want to use it. Don’t worry if you can’t swipe your card for this kind of emergency. Almost all credit cards offer cash advances through ATMs or bank tellers. Some even provide checks you can write that draw from the available credit on your card, although that is becoming less common. While most credit cards offer some sort of interest-free grace period on point of sale purchases, that does not apply to cash advances. You start getting charged interest from the minute you withdraw.?

On top of that, the interest rate on a cash advance is often higher than the standard card rate. It’s also compounding interest, so the longer you take to pay down your balance, you could end up paying interest on interest. This means your cash advance runs the risk of costing you more money than a high-interest private lender who likely charges simple daily interest rather than compounding interest.

Sell Your Stuff For Cash

Facebook Marketplace

Hands down the easiest, cheapest, and fastest way to sell your stuff online is through Facebook Marketplace. It’s also a great way to support your local community and reduce waste. Best of all? It’s free. Facebook allows you to sell to people you already know, and others in your community, through your social media network.

Buyers and sellers can also rate each other. This helps you build a good reputation for listing future items. It can also give you some insight into interested buyers. Since Facebook Marketplace is peer-to-peer you’ll need to arrange for pick up or drop off. Make sure you take the time to creep the buyer’s Facebook profile before meeting up and always practice safe sales.

Kijiji

Like Facebook, you can connect with your buyers personally. However, you’re likely to get inquiries from outside your local community, city, or even your province. Since you communicate directly with the buyer the two of you can arrange how to exchange the item on your own terms, and it’s completely free.?

The downside is that you won’t have access to more personal information about the buyer like you do with Facebook profiles. So make sure you proceed with extra caution and that the arrangement makes sense for the type of item you’re selling. Kijiji is a great option for those larger, more awkward items like furniture, appliances, or even used cars and campers.?

Garage Sale

If you have a lot of stuff to sell but not a lot of time, consider a garage sale. As long as it’s not broken or seriously soiled, nothing’s off-limits. Sell it all. Promote your garage sale on your social media, be organized, group like items together, avoid price tags, and be open to offers. Easy peasy.?

If you want to turn clutter into cash, the price will make or break the deal. It doesn’t matter if it’s brand new with tags or never been opened, it’s still second-hand. If you price it too close to retail value, kiss that money goodbye. Better yet, don’t even put a price tag on it. Let interested buyers make you an offer. Often times they’re willing to pay more than you would have expected.

This article is the shortened version of an article originally published on Hardbacon.ca by Heidi Unrau under the title "What To Do When You Need Cash Now".