When life’s big expenses crop up, it’s always best to pay cash. But what if you can’t? If you don’t have emergency savings and suddenly face a car repair, tax bill or some other major expense, you may have to borrow money from a friend or family member. Or you may have to charge the expense to a credit card. Instead, consider other options for covering an unexpected expense that could save you time and money in the end.
Apply for a personal loan
If you’ve cut all the extras you can from your budget, yet you still don’t have enough to pay your unexpected bill, it may be time to ask for help. If you need to borrow between a few hundred and a few thousand dollars for a one-time expense, a personal loan like LGFCU’s Signature Personal Loan may be a smart alternative to credit cards, or to asking friends and relatives for a loan.
Get cash from your home
Another option for financing a unexpected expense is a Home Equity Line of Credit (HELOC). A line of credit like this is secured by the equity built up in your home, giving you access to the cash you need to pay the unexpected bill. Emergencies don’t come with advance warning. When you need extra cash quickly or on the go, consider a Real-Time Loan Advance to get cash from an existing home or personal loan.
Whatever your emergency cash needs, research your options to make sure you’re borrowing safely at affordable rates.
The advice provided is for informational purposes only. Contact your financial advisor for additional guidance.