Emergency Money Loan
An emergency money loan can be a real help at a time in life when everything financial comes crashing in on a family or individual. With over seventy percent of all Americans living pay check to paycheck, anything unexpected can seriously rock the equilibrium of those who do not have the financial resources to meet unforeseen circumstances. Massive amounts of debt have brought Americans to the point that savings are depleted and millions of persons are at the mercy of the next turn of events. Before the advent of easy credit, parents could often be counted on to help in times of trouble, but now even the parents are too often strapped themselves to help. And so the rise of many companies offering an emergency money loan has entered the main streets of towns and cities across the country.
When a person doesn't have a rich uncle or a grandmother to help out when the hot water heater springs a leak or when the furnace goes kaput, there are plenty of resources online offering to loan the money needed to take of the crisis. But before a person decides to take out an emergency money loan, the first stop should be made at a local charity or church. Many charities have funds set aside for such situations and congregations may also be willing to help on smaller crisis issues. Many people are calling for the faith based initiatives of this country to step in and be more proactive in the lives of the community, and there is the possibility that a charity or church could actually be found that can help. These organizations may or may not ask to have the money paid back, although in most cases the loan would be interest free.
Going to a bank will be of little value if a person's credit score isn't at least six hundred forty. Banks do not deal with high risk loans because their stockholders have little tolerance for high risk customers. If a person has equity in a house, there might be the opportunity to get a home equity loan, but this may take up to a month to secure, and the water is really leaking all over the floor! If a local bank sponsors the credit card a person has, that bank might be willing to raise the ceiling on the borrowing limit. One of the final options from a bank might be a mortgage refinance, but only if there is some equity in one's place of residence and this kind of arrangement takes at least three weeks to a month to nail down. But dealing with a bank for an emergency money loan may not prove very fruitful. That is because banks are very aware of the debt to income ratio and though a credit score may be fairly decent, if there is too much debt for how much money a person or couple makes, the chance of a loan goes out the window.
Some experts suggest going to a credit union where the rules for lending are a little less stringent. While the best chance for a crisis lending agreement might come if a person is already a member of that credit union, that option should be fully explored before moving on the next option. Credit unions offer many of the same loan arrangements as traditional banks, but history has proven that in most cases, a credit union may be more approachable and sympathetic with a person's plight. But again, the admonition here is to not count on friendlier faces to crack their vault, even if the water is now running down the front steps of the house! "Take therefore no thought for the morrow; for the morrow shall take thought for the things of itself. Sufficient unto the day is the evil thereof." (Matthew 6:34) So what is the next step in looking for an emergency money loan?
Sadly to say, the further down the options one goes, the more expensive an emergency money loan becomes. There are some nationally known loan companies that do deal with people whose credit may be less than stellar. These companies offer both secured and unsecured lending agreements. If a person has substantial collateral, such as a house, a newer car that is paid off, quality jewelry, or stocks and bonds, a fairly decent emergency money loan may be possible because the lending company can take those items if there is a default on the loan. On the other hand, if none of those items are available for collateral, a signature lending agreement may be possible, which is simply a promissory note to pay back the lending agreement in a timely fashion and at a very high interest rate.
If all those options tank, there is still the possibility of dealing with what are known as payday loans. So high are the interest rates on these loans that some states have banned them from their borders, but these companies do exist, and while in many states the business is legal, it is certainly not ethical. Interest rates as much as one hundred twenty five percent have been foisted on people so desperate for an emergency money loan that the individuals become sucked into a black hole of never ending owing and ever increasing debt. Please do not ever use this resource. A situation will only become much more serious within a very short amount of time! The psalmist David once said that he never saw a child of God go begging for bread. For the person who has trusted Jesus Christ as their personal Savior, that may also mean a hot water heater.