When a financial emergency strikes, not everyone knows where to turn for help. However, there are a wide variety of options available depending on your unique situation. So, if you find yourself facing a period of financial difficulty, here are some options that could be available to you and how they may make the event easier to manage.
Friends and Family (not for everyone)
One place to look for help during a financial crisis is friends and family. Often, you have already made them aware of the situation, and they generally have a person interest in seeing you come out the other side of the situation in good shape. Additionally, they may be able to offer monetary assistance without the complex repayment terms required from banks or other traditional lenders.
However, it is important to note that financial matters can place a heavy burden on a personal relationship, especially if the funds are considered a loan and not a gift. Male sure and clarify any repayment expectations before accepting any funds as this ensures everyone is on the same page from the beginning.
For those already receiving certain services, crisis payments may also be available to help in extreme circumstances. These can help individuals facing difficulties due to issues like being the victim of domestic violence, results of a natural disaster, or being an incoming refugee. Every situation is unique, so there is no guarantee help is available here even if you receive other government assistance.
Examples of assistance include:
Charities and Nonprofits
Most communities have a variety of charities or other nonprofits designed to help those in need manage the financial burden associated with an emergency. This can include anything from assisting with housing payments in cases of unexpected job loss to providing funds for emergency car repairs.
Typically, funds from these organizations require individuals or families to have demonstrated financial need, such as meeting certain low-income requirements, similar to those set by Centrelink. Additionally, assistance may be available on a first come, first serve basis. Meaning, if there aren’t any funds available at the time, regardless of your need and other qualifications, they might not be able to assist.
A great example is that of the Good Shepard
In some cases, a short-term loan may be ideal for a financial emergency. However, these loans often come with a cost in the form of administrative fees and an associated interest rate. Additionally, the costs will be higher for those with bad credit or limited income, such as pensioners.
For those with strong credit and stable employment, you may be able to secure the money you need relatively quickly from a traditional institution. But those without regular income, low-income, or most of their income through entitlements may have a harder time. In some cases, applying with a cosigner can make it easier to get approved, but that does require another individual with strong credit to be willing to sign onto the loan agreement with you.
Learn more about small short-term loans here.
Depending on your unique circumstances, other options may be available. For example, you may have items you can sell in order to get the money you need. You may also be able to take on some extra short-term work to get the additional funds. When in doubt, begin by exploring the options above and see what may be available. In some cases, even if you don’t qualify for assistance, you may get a referral to other options that can help you out. So, keep an open mind and dedicate time to the search. You’ll never know if you don’t ask.