Six Ways to Solve a Cash Crunch

Are you in dire financial straits and looking for a way out? The best solution is to have planned ahead. If you're like most people, you haven't planned ahead so don't worry about it.

Financial emergency can mean different things to different people so it's not possible to give specific advice. For arguments sake, let's say you require 1,000 dollars in 7 days. Here are six possible solutions:

1. Emergency Fund

Emergency funds consist of cash set aside to handle financial emergencies. Remember how you feel now and when this crisis passes start saving percent of your income in a special account for emergencies. Financial emergencies are a fact of life so plan for them even though you can't predict exactly when they're coming. Planning ahead is always the best course of action.

2. Friends & Family

Family and friends may be willing to provide short-term cash. People who trust and respect you will likely be willing to help. It's time to get over any embarassment you may feel. Friends will be more understanding than bill collectors and banks. Best practice is to put it in writing and honor your commitment to repay the loan on time. Don't make excuses if you want these people to remain your friends.

3. Employer

Consider asking your boss for an early payday. Your next paycheck can be reduced by the amount of the loan. Financial crisis happen to almost eveyrone so there's nothing to be ashamed of. And you won't get what you don't ask for.

4. Credit Cards

Use your credit cards for a cash advance or to pay bills. Some credit cards have high interest rates but don't get too caught up with that. The interest is usually waived if you pay off the balance on your next billing cycle anyway. An you'll only pay 50 dollars interest on 1,000 dollars borrowed for 90 days even at a high 20 percent interest rate. In the long run, that's likely to be a better alternative than pay the enormous late fees you could be charged.

5. No Fax Cash Advance Payday Loan

As a last resort, payday loans offer up to 1,500 dollars cash with no credit checks. The interest rate will be high but focus on the amount of interest you'll pay instead of the interest rate.

6. eBay

Do you own anything you'd be willing to sell on eBay to raise cash? eBay has auction periods as short as hours, but the longer the auction the more bidders and the higher selling price you're likely to attract so a or day auction may be best if you can wait that long. Depending on the buyer, you could have your funds the same day the auction ends or a few days later.

There's no shortage of ideas on how to solve a financial crisis. The only limit is your own creativity and imagination. When this financial crisis ends, think about the next one and start saving 10 percent of your take home pay in an emergency fund. It requires discipline. You'll be very happy you were smart enough to create an emeregency fund the next time you need it.

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