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Money makes the world go around, and we all collect it to fund our existence. We try to balance what is coming in against what goes out, but more often than not, we come up short. This can cause a snowball effect, especially if you have more than one pressing payment and are in a financial hole before you know it.
Do you find yourself scrambling to raise capital for an urgent need? You are not alone. Many people are under the gun and have nowhere to turn for an influx of cash. Fortunately, there are solutions.
This is how to get out of a dire financial situation.
Approach Your Financial Lender
Most of us have dealt with a bank for several reasons, including:
This creates a relationship with the bank and specific loan officers you can approach to help you. As long as you have a proven track record of fiscal responsibility, they should be willing to lend you what you need.
A lender must examine your current balance sheet of assets to liabilities, financial history of borrowing and making regular payments, and earnings to determine what they can lend you. While some lending institutions are strict, a relationship with others can work in your favour and get you out of your dire situation.
Payday Loans
Sometimes, a bank won’t help you or has too many hoops to jump through, so you need a different way to get your money. This can be done through a payday loan.
Payday loans are exactly how they sound: you are borrowing money until your next paycheck. This is a quick and painless service by professional lending companies dedicated to helping people in their local community. Their lending criteria are more relaxed than those of banks, and the process happens fast, usually within the same day. You will have an agreement to pay them a fee, but it is more than reasonable and will be a way to bridge that financial gap.
Find Additional Income
When you fall behind on bills or have a sudden monetary requirement, your current cash flow may be unable to cover it. The solution? Bring in more money.
That sounds like simple math, but the equation is harder to work out, especially when you need to learn how to do it. Put; find more sources of income. This can be done by getting more hours at your current job. Better yet, develop a side hustle that you can do in your spare time, like:
If you look for ways to augment your income, you’ll find many, so find something you’d like to do and make an effort to earn that cash.
Borrow From Family and Friends
This can be hard because you want your loved ones to think you are financially stable and don’t want to be a burden. The truth is, these people are most likely to help out because they care for you.
Get together with them and tell them your situation. Then, ask directly if they can help you out. Don’t bring emotion into it, and let them know that if the answer is no, it won’t change the dynamic of your relationship. If they lend you money, be very thankful and promise to repay them soon. Then keep your word. They probably won’t ask for any interest, but give it to them anyway as a thank you for bailing you out.
Change Your Spending Habits
Sometimes, your financial dilemma can be fixed by putting yourself on a strict budget. It is easy to lose track of your spending, especially when one coffee and takeout order at a time. These smaller purchases, and some big ones, add up, and before you know it, you’ve run out of cash and are in trouble. To combat this, some serious changes must be made.
Put yourself on a budget and track all your spending. Make changes like brewing coffee at home, packing lunch for work, and preparing all your meals at home. Understand your hard expenses, and if there is money left over after all the bills are paid, put one-third in your savings account to build up an emergency fund, one-third towards your pressing issue and the other third to spend on yourself. By doing this, you should have the extra funds to pay off those urgent bills and payments.
This is how to get out of a dire financial situation. Nobody said life was easy, but you can certainly make it manageable with some prudent planning. Use this to guide righting your financial ship and head for calmer and more profitable waters.
