Has the pandemic incapacitated your income? The COVID19 pandemic is not over yet. However, it has already cost millions of jobs. That said, many people are gawking down the months with a fearsome question on their minds: How can I possibly pay my bills?
Those who are severely affected are undoubtedly in need of some type of financial help during the pandemic. The good news is that there are ways that you can obtain fast cash to stay afloat.
For a little help, below is a list of ways to get money during the pandemic and which option may make the most sense for your current situation. Read on to know more!
Personal Loan
If you are in urgent need of some fast cash, getting a personal loan can be an excellent option. Other than that, the best personal loan can give you access to at least 100,000 dollars in only several business days.
On one hand, personal loans usually offer significantly lower interest rates compared to revolving credit. In fact, according to the Federal Reserve May 2020 data, the average interest rate on a personal loan is 9.5%, while on a credit card is 14.5%.
Because the interest rate you are offered on a personal loan is decided by your credit score and income, the best thing you can do as a borrower to obtain a low-interest rate is to take time to look around.
Consider online lending platforms like Planet-loans because they usually offer personal loans at low rates and terms. Additionally, you can make use of a personal loan calculator to know your expected monthly payment based on present interest rates.
Home Equity
Another great financing option you can tap into is a home equity. When you own your house, there is a high likelihood that you will be able to access some extra cash by using the equity that you have put up in your home by making mortgage payments.
The good news here is that you have two options. If you need access to pooled funds that you can take out when needed, then the best option for you is to get a home equity line of credit.
However, if you would rather have access to a set amount of money for a huge purchase, you may be better off getting a home equity loan. A home equity line of credit is just like a credit card. With a home equity line of credit, you can borrow money against your home’s equity for a set period, repay it, and do it again as needed.
Just like credit cards, your monthly payments will differ based on how much money you’ve borrowed. Because home equity lines of credit typically have fluctuating interest rates, the interest rates can vary as well.
In particular some home equity lines of credit will offer a period of time wherein you will only pay the interest rate. Once the interest-only period is up, expect that your monthly payment will change to show the amount you have borrowed.
On the other hand, home equity loans are just like installment loans. With home equity loans, you are given a lump-sum. And because these loans arrive with fixed interest rates, you have an unvarying monthly payment to make until you repay the loan in full.
0% APR Credit Card
If you can repay any cash you spend right away, it might be worth considering taking out a 0% APR credit card. These credit cards offer the chance to use the card without accumulating interest charges on recent purchases for about 24 months.
With that said, if you feel that getting a credit card may be the best option for you, make sure to compare different card options. Another thing, if you are looking for money to repay existing loans, a balance transfer card is the best choice.
These transfers enable you to merge several balances into a single monthly payment and generally offer an introductory, lower interest rate. Thus, reducing the amount of interest charges.
But here’s the catch: don’t use the card for a cash advance. Normally, cash advances come with higher fees and low limits.
Takeaway
Most of us were not ready for the sudden financial blow caused by the COVID-19 pandemic. So, if you are in a close-fisted spot, it’s important to keep your financial health in your thoughts as you gauge your options. Always secure your credit and make it as straightforward as possible to recoup once the pandemic is over and things are back to normal. It can mean selling things or items you do not need rather than getting a payday loan or withdrawing money from your retirement account. Alternatively, the funding options above can help.
