You have exhausted your emergency fund. And you have almost overdrawn your current account and there are only a few dollars left in your savings account. You need extra cash. First, identify internal sources of funds where you don’t have to incur charges or interest before you get funding from outside sources. Here are the ten sources of fund:
1. Cash your fixed deposits: Sacrifice your interest for premature withdrawal of your fixed deposit. Take out the amount you need and deposit the rest into your savings account.
2. Your children’s savings accounts: There are substantial savings over the years in your children’s savings accounts. You may withdraw but remember to top up later.
3. Liquidate part of your investment: Look into your stocks, shares, and unit trusts. Sell a small part of it to meet your cash requirements
4. Staff advance from your company: Salary advance is the quickest way to get cash without interest and charges. However, the amount will be deducted at the end of the month when you get your pay.
5. Cash value of your life policies: There is cash value in your life insurance policies. You can get a policy loan against the cash value. In fact, if one of the policies is investment-linked just do a partial redemption and you don’t have to repay. The policy is still in force.
6. Get a loan from your friends or relatives: You have to be thick-skinned. It is embarrassing to let your friends and relatives know your predicament. To maintain goodwill when you repay the loan, add a little extra.
7. Pawn your valuables: Don’t let those you know see you at the pawnshop. You can pawn your jewelry to meet your temporary needs
8. Get a personal loan from a bank: It may not be as fast as you think, but the banks are looking for people with good credit standing to give out personal loans. Be one of them. Interest will be charged to your loan and you have to repay in monthly installments
9. Get an advance from your credit card: You get immediate cash at a higher cost than a loan from a bank. You will be slapped with an advance fee and compounded interest as long as the amount is outstanding.
10. Borrow from a loan shark: This is the last resort. The interest rate is exorbitant. You have to make very sure to pay back fully on time or else this will be the beginning of your nightmare.
The best thing to do, however, is to earn some extra money to meet your cash requirements.
Posts
