What can be the best source of Emergency Cash?

26-Aug-2013

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Loans are of various types and the borrower can opt for the type as per the needs and ability to make repayments. If the borrower is in need of funds to purchase a house or a car, or for consolidating his debts, he can afford to wait and search for the best deals. But, if the need is urgent and the borrower cannot postpone the expenses, he is compelled to look for emergency cash loan with bad credit. Emergency loans can be availed from banks and the best of the sources of instant cash.

Emergency cash loans are offered in various ways. It can be a home equity loan, an unsecured loan, a home equity line of credit or a charge on the credit cards. Credit Unions can be considered when you are on the lookout for emergency cash. However, the emergency cash loans from the banks are offered only if the borrower has a good credit history. The banks are not willing to take the risk by offering loans to the borrowers who have bad credit record. So, it is not possible to get traditional loans. In such cases payday loans can be considered as a solution for emergency needs.

The borrowers of payday loans should be highly cautious. The payday loans are emergency cash loans offered to an individual with the specification that it should be repaid on the next payday. The proof of income and an active bank account are the requirements to be approved for payday loans. A post dated check is written for the full amount of loan and the fees associated with it. Since the interest rates are extremely high with payday loans, they tend to aggravate the financial crisis. It becomes very difficult to make the repayments promptly.

Default in payments results in extra payments towards the cost of the emergency cash loan as the interest amount is added to the unpaid amount and also the borrower has to pay extra charges towards the bounced checks. If the borrower extends the term of the loan, it is sure to cost him much more. In fact, the borrowers of payday loans get trapped in the vicious cycle. The need to settle the payday unsecured loan on their payday, they are left with no funds to cover even the basic commitments for that month which in turn makes them go in search of another payday loan.

Emergency cash loans may seem to be a solution while you are in dire need for funds, but the relief depends on your ability to make repayments at the time specified. Title loans are also considered for emergency funds. It is true that the borrower can get instant cash in times of emergency. Default in the repayments result in the loss of the asset which is secured for obtaining title loans. The best alternative could be keeping away a part of your income every month to help you when you need money for some expenses that cannot be deferred.

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