Every now and then, financial challenges such as sudden medical expenses, house repairs, or family emergencies can catch you unaware and significantly hamper your financial resources. Such situations often leave you lacking funds to cover necessary expenses such as groceries or utility bills. In such cases, you’ll need a quick source of funds to take care of your responsibilities until your financial situation is stable again.
However, sourcing those much-needed funds could also be a challenge on its own. After all, you’ll need to find a way to get the funds responsibly, meaning that it shouldn’t lead to worsening your existing financial troubles. If your finances are running short, then here are some ways to obtain funds while also avoiding potential financial pitfalls down the line.
1. Borrow from People You Trust
One way to obtain the funds you need without having to worry about exorbitant interest rates would be to borrow from close family and friends. Borrowing from people you know often comes with little to no interest as well as a more flexible payment deadline. This allows you to focus on settling your financial emergency first without the pressure of paying immediately out of fear that your debt will incur higher interest.
Do keep in mind, however, that clear communication is very important here. Even without any pressure to pay back the money right away, treat the borrowed money like any other loan and set a repayment plan with the person or people involved to avoid straining your personal relationships. It’s also wise to put any terms in writing— including whether interest will apply— to ensure that everyone has the same expectations.
2. Use Your Credit Card to Cover Expenses
Your credit card can also be incredibly helpful in getting you through short-term financial challenges. If you need funds to pay bills or buy essentials, you can charge it to your card in the meantime and just pay it off at the end of your billing cycle. Getting a credit card cash advance is also another option, granted that you fully understand its terms and can limit the amount you’d be withdrawing to a minimum.
During financial challenges, it’s best to have a credit card that can support you in multiple ways. The Landers Cashback Everywhere Credit Card from Maya, for instance, can be used to cover your immediate expenses while also giving you generous rewards in return. The Landers credit card can give you up to 5% cashback at Landers Superstores, 2% cashback on dining expenses, and 1% cashback on other qualified spends.* These cashback credits let you save money the next time you shop for essentials at Landers, which can be a big help in easing your current financial burdens. You may also use your Landers Everywhere Cashback Credit Card for cash advances, which you can get by withdrawing at any Visa-supported ATM.
3. Look into Employer-Based Advances or Loans
Also check with your employer if they’re offering payroll advances or loans to help you with your financial emergency. Employee loans typically come with lower interest payments and can be paid through salary deductions each month, making it easier for you to keep up with payments. Do check first whether the deductions that will be made are manageable enough so as to not further strain your finances.
You may also speak with your manager or the HR department to see if the company has other programs that can help employees with their particular emergency needs. For instance, if your financial problem is related to medical expenses, then your employer might be able to cover part of it as part of a company-wide health insurance.
4. Sell Items You No Longer Use
Look among your belongings for items that are still in good condition yet you no longer use and consider selling them for extra funds. Clothes, shoes, electronics, and other collectibles can easily find buyers if you post them on a platform that gains a lot of traffic, such as Facebook, Instagram, or Carousell. Make sure you research current market prices so you can price your items fairly, and don’t forget to account for the age or condition of the item in the pricing as well. Not only can this get you cash quickly, it can also help in decluttering your space.
5. Take on Gigs or Freelance Work
If you’ve got spare time, consider taking on gigs or freelance work on the side to earn additional funds. You can look into platforms such as Upwork or Fiverr to find clients and accept jobs at your own pace and schedule. Do make sure that you’ll be able to balance all your working commitments and deliver excellent quality of work to avoid issues with clients and payments. In addition to providing you with another source of income, taking on freelance work may also help you build up your savings or an emergency fund to cushion your finances should you encounter any monetary difficulties in the future.
When financial challenges arise, you don’t have to make dire and desperate decisions just to overcome them. Rather, you can look into responsible means to earn the funds that you need while also ensuring that you won’t end up creating more financial problems for yourself. The next time you’re in a financial pinch, try the tips above to help steady your cash flow and guide you through the crisis with confidence.
*Transactions that don’t qualify include: cash in, cash advance, quasi cash purchases, casinos and gambling, fuel, supermarket, pharmaceuticals, utilities, telco, and government.
