Are you strapped for cash? Taking a personal loan, borrowing from your 401K, and leasing any assets you may own are some of the few things that you could do. Read ahead to find out more.
1. Personal Loan
Taking out a personal loan would be one of the easiest to get your hands on a lot of cash. Of course, the amount you will be able to borrow depends on how much you earn, and what your job is.
Just like with most loans, personal loans can come with high-interest rates. Shopping around before settling would be smart. You would know who is flexible and offers the best rates.
2. Savings Account
If you have savings for a rainy day, it might be time to tap into it. Taking from this fund would mean that you don’t owe anyone money, which would be a plus.
3. Second Mortgage
While on the topic of borrowing, you could take out a second mortgage. This might be the way to go if you’re in need of a very big amount. Second mortgages don’t have that high of interest rates either.
Also, borrowing against home equity would mean that you won’t need any guarantors, as the equity on your property would be used as collateral.
Decide between fixed vs variable rate mortgage. The former of the two would result in a more stable payment plan. But the latter might help you save.
4. Retirement Fund
Do you have a 401K set up? You might be able to borrow from it. There are restrictions to this, however. You will only be able to borrow a max of 50% of the saved amount. And you would have to pay back the sum you took within 5 years with interest.
5. Sell or Lease Assets
You probably own a couple of assets and valuables. Sell them to get the cash that you need. If you don’t want to sell them, that is alright. You could always pawn or even lease them.
6. Get A Second Job
Why not get a second job? You would consistently be making cash on the side. Depending on your skills, and the type of job that you will get, the amount that you would make would differ.
You probably have a car. Try and register on a ridesharing service. If not, you could deliver food too. You can do both if you want.
So, what did you think about all of the points that were discussed? There are quite a few ways you can get your hands on money if you need it. If you need a large sum of cash, you can take out a second mortgage. While on the topic of borrowing, you could take out a personal loan or even borrow from your 401K. Just remember that the bank or finance house you work with should meet these needs, as you want someone flexible.