How to get emergency cash?
After all the holiday shopping, many of us have huge credit card bills to pay in January. Plus, many of us also need to get ready to pay some taxes in January. So if you do not have the savings, how do you come up with some emergency cash?
The editors of Consumer Reports have five excellent tips loosely ranked from most to least attractive in terms of their costs and risks:
- Sell some stuff – Guaranteed cash and it’s a good way to clean out the garage. Consumers should try eBay, hold a yard sale, or put an ad in the local newspaper. The one that I like the most (and it is FREE) is Google Base.
- Ask family – Family and friends are likely to want to help and may be able to move more quickly than the bank. To avoid a mess, clearly state in writing if it is a gift or a loan.
- Tap the home equity – Home-equity loans tend to be relatively inexpensive compared to other loans; currently, a $50,000 HELOC carries an average annual interest rate of 5.5 percent for people with a credit score of 700 to 719.
- In extreme circumstances, consumers could borrow against their retirement plans or stocks, or use their credit cards.
Recommended article: How to get out of debt?
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