What do you do when an emergency or potential opportunity arises that costs more than you have in your bank account? Do you hope for the best and weather the storm? You may bypass the opportunity and wait for something else to come your way. Someone with few assets, less-than-stellar credit, no outside help, and a limited timeframe, might defer to these last-resort options; however, they’d be overlooking the many avenues to secure large sums of cash to accomplish their goals.
Do you need to cover a sizeable debt like federal taxes or student loans? Perhaps you’re unemployed, sick, or injured and need a way to cover monthly expenses until you get back on your feet. Maybe you want to start a business but don’t have the necessary capital. Whatever the case is, there are effective ways to get the money you need. Continue reading to learn more.
Government And Non-Profit Programs
Before you begin spending or stressing about the money you don’t have, look into government programs and non-profit organizations that offer financial assistance. Believe it or not, there are many opportunities to receive cash, grants, and other resources to help you handle emergencies or make an investment.
For example, if your income falls below the poverty line, you could receive free healthcare, affordable car insurance, housing, utility assistance, groceries, and more. If you have a long-term illness or disability, some programs and organizations will help you cover medical expenses and invest in home improvements to accommodate your needs.
If your goal is to start a business, you can find plenty of grant opportunities that will give you thousands of dollars to launch.
Sell Something Of Significant Value
Do you have a family heirloom, antique, vehicle, rental property, or other items you could sell for cash? If so, finding a buyer is easier than ever before. You can take pictures, write a description, and advertise your items for sale on an online marketplace.
Depending on the demand, you could find a buyer in just a few days and have the cash you need to handle your affairs. Another option is to find a pawn shop or specialized buyer to make you an offer on your belongings.
Borrow From Your Retirement Account
Did you know you could borrow from your retirement or pension account? According to the IRS, you can borrow up to $50,000 or half of your vested account balance (whichever is lesser). Borrowing from a retirement account is often faster and more flexible than applying for a traditional loan or line of credit. It is important to note that you must repay the loan in full by the agreed-upon date to avoid tax implications.
Apply For A Life Insurance Loan
Do you have a permanent life insurance policy? If so, you can apply for a loan to get a large sum of cash. When you pay into whole and universal policies, a portion of your payments goes towards a cash value. Although the value growth varies by policy type and guidelines, you can typically borrow up to 90 percent of the cash value. While this applying for a life insurance loan could be a suitable option, it’s important to remember that missed payments can lead to compounded interest and a smaller death benefit.
Sales Leaseback Programs
Some financial circumstances cause people to consider selling their homes and using the proceeds to resolve the issue. However, selling a house is expensive, time-consuming, and may not generate the desired results. Not to mention, you must leave your comfort zone and find a new residence.
Sales leaseback programs offer a more practical solution. It’s an opportunity for homeowners to sell their homes, reside in the residence as tenants, and buy back the property at a future date. A sales leaseback program allows you to secure the cash you need while avoiding the complicated process of selling your home and relocating.
You may need more money than you have available for plenty of reasons. Whether you’re trying to deal with an emergency or make an investment, there are plenty of ways to get money fast. However, when typical suggestions like taking out a loan, borrowing from loved ones, or getting a side gig aren’t sufficient, the above options may offer the solution you need to accomplish your goals.