4 Ways You Can Secure Emergency Holiday Funds

Posted on: 26 November 2014

As joyous as the holiday season may seem, it can also be a source of anxiety -- particularly where expenses are concerned. If a combination of gift shopping, necessary regular payments, and a sudden emergency situation puts you in a financial bind, here are four ways you can relieve the pressure temporarily.

1. Friendly Loans

You'll never find a more sympathetic lender than a loved one. Friends and relatives are likely to let you borrow some money (assuming that they have the money to spare), typically at minimal or zero interest. Even so, you'll want to take such loans just as seriously as would a bank loan, paying your benefactor back on time or early, to prevent damaging your personal relationship with that person.

2. Credit Card Advances

Most credit cards offer a cash advance option for people who need to pay a vendor who doesn't accept that particular card (or credit cards in general). Be aware, however, that you'll pay a small fee for withdrawing funds in this manner, in addition to interest rates that can easily reach 25 percent. Putting your payments directly on the card, if possible, may make more sense if you're sure you can pay back the whole amount within that card's interest-free grace period.

3. Bank Loans

Your banking institution may be a good place to obtain an emergency loan if your credit rating will hold up under the bank's thorough scrutiny. There are two primary types of bank loans:

Unsecured loans - An unsecured loan is a straightforward loan with no obligation to attach any assets. While you're not risking your personal possessions with this type of loan, be advised that a low credit rating and/or spotty history with the bank itself may cause you pay a high interest rate or have your request rejected.

Secured loans - Secured loans require you to put up your home, vehicle, jewelry, or other valuables as a guarantee that the amount will be repaid. While this type of loan allows you to qualify for higher amounts and lower interest rates than you'd hope to get through an unsecured loan, failure to pay could cause you to lose the secured items.

4. Online Payday Loans

Online payday loans are an extraordinarily fast way to get the money you need, even if you have a weak credit rating. You might need to secure a vehicle or other asset to the loan. The key to this type of transaction is to make absolutely sure you can pay it back quickly. This will keep from paying a potentially steep interest rate. For more information, contact USA Cash Services or a similar company.

Whichever method of obtaining emergency funding you choose, think carefully about the pros and cons, and be ready to pay back the full amount at whatever terms you've agreed to. Smart loan handling during the holidays could be critical for ensuring a happier New Year.