The average American has about fifty thousand worth of debt, and even with an emergency fund or a savings account that debt can become overwhelming. If you need emergency cash to pay off credit/debt, then you may be considering the best option.
There are many options out there for those who want to pay off their credit, the best one for you will depend on the amount of debt you have, and the kind of credit that you are carrying. Below you’ll find a few options to get the emergency cash, and what kinds of financial situations they work best for.
Debt Consolidation for Emergency Cash to Pay Off Credit
For anyone struggling with debt, or simply wanting to organize debt, debt consolidation may be a good option. Debt consolidation is the process of transferring multiple smaller debts (usually accompanied by high interest rates) to a larger form of debt, which is accompanied by lower interest rates.
Debt consolidation is not for everyone; however, it will work well for those who already have good financial habits and a pretty good balance with income and debt. Below are a few examples of the different ways you could go about debt consolidation:
Consider Taking Out a Loan
Loans can be made available for a variety of financial histories. Before considering a loan for debt consolidation, it is important to look at; if the amount will cover all debt, the amount of interest that the loan carries that a loan will carry. Here are a few loan types to look into:
- Title Loans Title loans are one type of loan that works well for those who don’t have the best credit score. Instead of lenders focusing on your credit history, they will focus mainly on the value of your vehicle and your income. In most scenarios, you can keep and drive your vehicle, as long as you meet your monthly payments.
- Personal Loans personal loans are some most commonly used loans out there. There are all kinds of personal loans out there.
- Payday Loans payday loans work by securing funds with the borrower’s paycheck, having bad credit with these loans is okay.
- Home Equity Loans if you own a home, a home equity loan could be one option to consider when taking out a secured loan.
- 401k Loans many people choose to borrow from their 401k for large, significant expenses. If paying off your credit could mean a better quality of life and the ability to save for the future, then it may be worth considering.
Balance Transfer Credit Card
American adults usually carry an average of roughly $6000 credit card debt. If you are one of those people, you may be tired of having to keep track of credit card interest rates and due dates.
One way to make credit card balances more manageable and sometimes more affordable is going to be with a balance transfer credit card. There are many zero percent interest rate introductory offers that balance transfer credit cards offer. Credit cards come in all kinds of amounts, interest rates, minimum payments, and perks.
Before choosing the one to use for debt consolidation, it is important to find a good balance between those three factors (for your personal finances). Having one credit card payment can make monthly payments easier and give you peace of mind.
Emergency Cash Paying Off Federal Student Loans
Student loans can be considered a different form of debt than something like credit cards or personal loans. Federal student loans come with highly competitive interest rates, so refinancing them with a private loan won’t make sense. And so, when approaching paying them off, there are a few strategies that work best.
- Employment Reimbursement. Find out if your place of work offers tuition reimbursement, if so, you can use those funds to pay off even a partial amount of the student loan funds.
- Apply for Student Loan Forgiveness. If you work for a non profit, are a teacher, had your school close while you were enrolled, or soon after leading, or become disabled, your student loans may be able to be forgiven.
- Deferment or Forbearance. If you are facing financial hardship or a financial emergency, you can pause your debt repayment by switching your student loan plan to deferment or forbearance status.
- Income Based Repayment. Another payment plan that the federal government offers is income based repayment. In this scenario, the provider will take a look at your monthly income, living expenses, and other monthly expenses. Afterward, they will come up with a reasonable monthly payment amount.
Getting Emergency Cash to Pay Off Credit on a Mortgage
Paying a mortgage can be a little more complicated than student loans or personal loans. Here are a few strategies that homeowners can take if they are struggling to make payments on their mortgage.
- Mortgage Loan Modifications. If you are having trouble making your mortgage payments due to job loss, unexpected expenses, or due to other reasons, you can talk to your mortgage lender. They can try to adjust the mortgage, even if it is short term, to get back on your feet.
- Government Assistance Programs. The US Department of Housing and Urban Development or HUD provides homeowners all kinds of assistance, including mortgage assistance. And with the coronavirus impacting the finances of so many Americans, there are even more support programs announced.
- Charities and Nonprofits that Can Help with Mortgage payments. Here are some nonprofits you can reach out to when you need extra money to pay your mortgage:
- The United Way
- Salvation Army
- Religious Organizations
- It will be a good idea to also check out local charities.
A Few Tips for Paying off Debt Quickly
Here are a few tips you can use:
- Use the snowball method (go for the high interest debt or the most amount of debt)
- Set up auto pay for your credit card bills and other debt payments if possible
- Pay attention to interest payments
- Set up financial goals for yourself
- Try budgeting or using a financial planner
- Save money by paying more than the minimum amount due
- Have at least three months’ worth of emergency savings to remain debt free in the future
Contact Max Cash Title Loans Today
If you think a loan is a good option for emergency cash to pay off credit, start with Max Cash Title Loans.2 We work with title loan lenders that offer low interest payments, are flexible, and could help you get the extra cash you need.4 5 To get started with a title loan, simply head to our website and fill out an online title loan application. Or you can give us a call at 1 855 561 5626 seven days a week to speak to a helpful representative.
When you need emergency cash to pay off credit, and your emergency savings account isn’t enough, you need funding options. There are many ways to go to get funds to pay for credit.
When paying specialized loans like student loans or mortgages, there are more options when making ends meet. With contact to the right resources, you know that you’ll be able to get back on your feet.