We have all been there. Maybe it was the diamond necklace you got as an apology gift for forgetting your marriage anniversary, or the swanking new car that you couldn’t really resist buying. One way or the other, you ended up spending way more than your monthly budget, and were faced with the need to somehow make up for the deficit between your bills and your income.
Get a Car Title Loan
While mortgaging your house can be a bit excessive for short term funds shortage, getting a loan in lieu of your car is much more doable. Car title loans offer quick approval on short-term loans, by holding on to the title of the vehicle as collateral. Generally, the interest rates of such schemes are higher than traditional finance, since they bypass the usual credit processes and are meant for short term needs.
If you have no other options, and need the cash immediately (for example, in medical emergencies) car title loans online can be just the thing for you.
Apply for a Short Term Bank Loan
Before committing to a triple-digit interest rate on a car title loan, you should look into all traditional loan options first. Usually, even the most expensive bank loan is far cheaper than a title loan, and some banks will accept your car has collateral anyways, so you might be able to pledge your car at bank-level interest rates.
Keep in mind that a bank also looks at your credit rating and borrowing history, so this option is only suitable if you have a good credit record.
Take a Credit Card Cash Advance
We all know that taking cash advances from credit cards is exceptionally expensive. But while the interest rates charged are quite high if compared to traditional loans, they are still rather lower than the rates seen in title loans.
For short term needs, it might be a good option. If you are certain to repay the loan within a few weeks, a credit card with an available credit line will be able to access the funds far more easily and cost-effectively.
But if the balance ends up taking some time to pay off, the interest charges will start piling up, ultimately reaching unmanageable levels. So only go down this route if you are absolutely certain you can repay within a short timeframe.
Try Your Hand at a Part Time Job
Yeah, yeah, I know what you are going to say. There is no time, there are no good part time job opportunities, etc, etc. But you know what? The gig economy is at an all time high, and you would be surprised at the amount of opportunities out there.
Some people are quite creative at finding such opportunities, through helping out local businesses or freelance gigs carried out remotely. This can be an excellent opportunity to polish your skills and add a few lines to your resume, while at the same time getting the extra cash without incurring any debts.
Cut Down on Your Expenses
If all else fails, try cutting down on your spending. While it is easier said than done, if these temporary sacrifices can get you through a rough patch unscathed, it is definitely a much better option than taking a loan.
First of all, categorize your expenses into essential and non-essential. Groceries, electricity, etc. are obviously non-negotiable, so put them into the essential tab and forget about them. But other things like take aways, your weekly drinking tab, or even those hobby classes you picked last month? That’s fair game.