How to Handle a Financial Crisis

Are you in dire financial straits and looking for a way out?  Planning for inevitable financial emergencies is the best course of action.  If you haven't planned ahead you're not alone so don't worry.

It's difficult to give specific advice without knowing the specific details of your situation.  But let's say you need , dollars within a week.  Here are several alternatives:

1. Emergency Fund

If you had an emergency fund, you obviously wouldn't be in a financial crisis.  Remember how you feel now and when this crisis passes start saving  percent of your income in a special account for emergencies.  Your next cash crunch is coming.  You just don't know when so you might as well plan for it now.  Smart people plan ahead for financial emergencies as well as retirement.

2. Family & Friends

Family and friends may be willing to provide short-term cash.  These ought to be people who know, trust, and respect you.  Don't be embarassed, almost everyone faces financial emergencies.  Besides, wouldn't you rather deal with someone you know instead of bank or other lender.  Put it in writing, be specific about when you're going to pay back the loan, and honor your obligation.  Don't make excuses if you want these people to remain your friends.

3. Employer

Some employers are willing to make cash advances.  You're going to have to get over any embarassment you may feel.  Financial crisis happen to almost eveyrone so there's nothing to be ashamed of.  One thing's for sure:  You won't get what you don't ask for.

4. Credit Cards

Use your credit cards for a cash advance or to pay bills.  Some credit cards have high interest rates but don't get too caught up with that.  If you pay off the balance within  days, there usually is no interest charge.  An you'll only pay 50 dollars interest on 1,000 dollars borrowed for 90 days even at a high 20 percent interest rate.  That's probably a lot less than some of the exorbitant late fees some utitlity companies and others charge.

5. No Pay Day Fax Cash Advance

This is a last resort, but you can get up to , dollars within  hours without a credit check.  If the amount of interest you pay is less than any late fees you'll avoid, it may be a good idea.

6. Online Auctions

Can you sell something on eBay that would make money?  In as little as 24 hours you can sell an item on eBay and have cash in hand but it's best to have longer auctions that generally result in higher selling prices by attracting more bidders.  Depending on the buyer, you could have your funds the same day the auction ends or a few days later.

There's no shortage of ideas on how to solve a financial crisis.  Creative thinking is the key.  And remember when this financial crisis passes, start saving for a "rainy day" by putting  percent of your income into an emergency fund.  It requires discipline.  You'll be very happy you were smart enough to create an emeregency fund the next time you need it.