5 Ways to Get Emergency Money

July 27, 2021

Despite the government’s effort to swiftly pass a $2 trillion stimulus package that was designed to provide fast aid to American citizens all over the country, the harsh reality is that people simply need more than a one-time $1,200 check to live off of, especially with millions of citizens experiencing unemployment.

According to Business Insider, the median necessary living wage across the entire United States is currently $67,690, with states like New York requiring an annual income of $95,724 to live comfortably. 

Now, it doesn’t take a mathemetician to figure out that this is much, much more than $1,200 per month. So, what do you do when you’re out of a job due to the coronavirus crisis and need cash fast? If you weren’t able to stretch your stimulus check, don’t have an emergency savings fund, and are out of a job, here are five ways to get emergency money.

1. Look for Government Assistance

Aside from the stimulus check, there are other ways to receive financial aid from the government at the moment. We’ve detailed a pretty comprehensive guide to ways that you can find aid in our article on Places to Find Financial Help Amidst Coronavirus Crisis. However, we’d suggest first checking out as they’ve provided a high-quality round-up of resources and benefits for those who need them. On this website, you can search for government benefits and financial aid related to unemployment assistance, healthcare, and food and nutrition. Or, you can use their handy Benefit Finder tool to find additional benefits you may be eligible for.

2. Ask Friends & Family

Draw a Contract

While it might feel uncomfortable, asking friends or family for a personal loan during this tough time is a great way to avoid paying high interest fees on bank loans or credit advances. And, you can even draw up the terms of your own loan. Work together with your friend or family member to draw up a contract that works best for all parties involved. You can agree to an interest rate if any, and work out all of the details for the repayment period. It’s a great way to protect everybody involved in the transaction and avoids and uncomfortable conversations down the road.

3. Take Out a Loan

Mortgage loan interest rates are currently down and personal loan interest rates currently range from about 5% to 36%. While we wouldn’t normally suggest taking on more debt in order to pay off current debt, sometimes it’s necessary when you’ve got other higher-interest bills and loans to pay off. Personal loan interest rates are so low right now that it might make more sense if your credit card debt has higher interest rates. According to the Federal Reserve, for example, borrowers who were charged interest on their credit-card debt paid an average of 16.97% in the third quarter of 2019. However, the average rate on personal loans during that time was 10.07%.

4. Get a Cash Advance

Certain credit cards offer zero fees when it comes to taking out cash advances. And, when you’re in the middle of a financial emergency, this is one way to access cash fast (even if it’ll end up costing you later down the road). Cash advances on credit cards should be used only as a last resort. It’s best to check with your credit card issuer directly to inquire about their cash advance fees. Getting an ATM cash withdrawal with your Bank of America credit card, for example, comes with a 5% of the amount and a 26.49% APR. So, again, this is a costly option that will likely cause you to owe more in the long-run, but if you’re really in need of money now, it’s an option nonetheless.

5. Consider a Loan App

You worked today. Get paid today | Earnin
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If you don’t need too much money, then you might consider downloading a loan app. Earnin is one of the best payday loan apps that believes that “you should be able to access your pay whenever you’ve done the work.” Essentially, you’re giving the app permission to track when you go to and from work to log your hours. After logging your hours, they’ll pay you what you earn before your real paycheck even comes in. It’s totally free, too. Once you get your actual paycheck, Earnin simply deducts the money you’ve already taken from the paycheck. So, keep that in mind when spending and plan accordingly.

Saving More For Future Emergencies

Getting your emergency fund prepared can be done while you build credit. If you're looking for a way to start building your credit or improve your credit score, getting a credit builder loan can be a great way. Cheese Credit Builder is a great tool to build your credit score and save money at the same time. Simply apply for a credit builder loan of as little as $500 and choose a term length of 12 or 24 months. Use our autosave feature to make on-time payments and build a great credit history little by little. Cheese reports all your on-time payments to 3 credit bureaus. At the end of the term, you can get the money back (minus the interest) and use it as emergency fund.

Sign up here to get started today!