Emergency Cash Loan

By: EconomyWatch Content   Date: 30 November 2009

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Paying utility bills that you may have forgotten to do earlier or booking airline tickets to attend a family emergency are little ‘emergencies’ that appear and the difficulty is that you may be well short of cash to cover those expenses. In such cases, an emergency cash loan is the perfect answer to your short-term financial needs.

Emergency cash loans are not only easy but speedy too. Once the loan is approved, the funds are deposited in your checking account in a matter of hours.

The loans are of two types. In case of single-payment plan, the debt is deducted automatically from your checking account along with the interest amount. On the other hand, in case of an installment plan, you can opt to pay back the loan in installments over a time period.

How to obtain an Emergency Cash Loan

You can obtain an emergency cash loan through a variety of means:

Help from friends: Consider tapping into your network of family and friends to bail you out with a loan.

Cash loan from bank: You can get a loan from banks or credit unions in a variety of ways like:

·        A charge on your credit card

·        A home equity loan

·        A home equity line of credit

·        An unsecured loan

Pay day loans: Opt for this option if you need quick cash and you have got a bad credit to boot. Beware of its high APR.

Advantages of Emergency Cash Loan

An emergency cash loan offers the following advantages:

·        You can avoid eviction from your apartment and pay your rent, utilities and other bills on time.

·        Credit checks aren’t high on the lender’s priority list.

·        You can get cash quickly unlike traditional methods which take days to process your application.

Disadvantages of Emergency Cash Loan

An emergency cash loan offers the following disadvantages:

·        Interest rates are sky high due to high risks involved in the process.

·        Emergency cash loans often lead to impulse spending in place of making payments for more important requirements like mortgages or other bills.

·        You may get drowned in debt when a sizeable portion of your income goes out to fulfill your loan obligations.

A final disadvantage to consider is that if your debt turns excessive, the debt collection agencies will use every method in the book to recover the money you owe to your lender.


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