9 Ways to Borrow Money in a Financial Emergency

A financial emergency can arrive at any time in life. A financial crisis may be due to a medical condition, laid off from the job, or damage to the property. Whether you need money to pay your house rent, unexpected bills, or for caring for the loved ones and children, financial emergency creates a stressful condition in a person’s life.


One thing that is certain during such times; you need some immediate cash to get yourself out of the situation. The majority of people get caught unprepared during such times. If you are also one of them, you are not alone.

All you need is a source of quick cash. You can consider borrowing some money to get out of the financial emergency. When you are looking to borrow the money, you need to evaluate the available option. You should compare all the options and know which is better. It is better to choose the one with the lowest interest rates. Here are 9 ways you can borrow emergency fund amount during a financial emergency.

1. Get Money from Family or Friends

You can borrow money from your family or friends. They will probably not charge any interest from you, and if they do, it will be less than a bank. Your friends and family may also provide you with some money to help you in difficult times. It may not be comfortable to ask someone for help, but remember, most people face financial emergencies in their life. While not everyone is in a position to help, you can still ask on a promise to return the money at the earliest.

2. Take a Personal Loan

Another popular option to borrow money in a financial emergency is to apply for a personal loan. Loans are easily available from banks, online lenders, and credit unions. In most cases, you can apply online and get cash into your bank account within a few business days. If your credit history is good, and you have a stable income, your loan approval chances become high. The loan amount can range from $1000 to $100,000, but you should only apply for the amount of money you need, as you will have to pay back along with interest.

3. Use credit card

A credit card can be a convenient and easily accessible option in a financial emergency. Most people use this to get rid of unexpected expenses. The amount of money you can borrow from your credit card depends upon your existing balance and available credit limit. For most borrowers, credit cards are the less affordable option, as they involve higher interest rates than personal loans. Putting major expenses on the credit card can make it hard for the borrower to pay off. However, if you are in the middle of the crisis, you can use a credit card to get out of it. Ensure that you pay all the balance off the credit card at the earliest to avoid paying any additional interest.

4. Apply for HELOC (Home Equity Line of Credit)

Home Equity Line of Credit is one of the options to consider when it comes to an ideal emergency fund. If you have your own house and pay a mortgage, you develop equity over time as you pay your mortgage balance. Once you have a sufficient equity build-up, you can borrow funds against it by taking out HELOC. Often, the Home Equity Line of Credit has lesser interest rates than personal loans or credit cards, making it an attractive option to borrow money.

The rates of HELOC fluctuate with time as per the market. Also, it takes time to establish a substantial equity amount, and all house owners may not be eligible for this. Moreover, there is a risk of losing your house if you are unable to pay. Hence, consider this option carefully before you apply.

5. Take Loan from a Credit Union

Several credit unions provide low-interest alternatives to payday loans. National Credit Union Administration regulates PALs (Payday Alternative Loans). Credit Unions provide consumer-friendly as well as affordable loans. You can borrow a loan ranging from $200 to $2000. Borrowers with bad history may also be eligible for the PALs. In case you are in a financial emergency and require some additional help, Payday Alternative Loans are a good solution.

6. Liquidate Your Assets

You can sell your assets, such as jewelry sets, diamond pins that you hardly wear, clothes, etc., on eBay or other similar websites to get some money in the financial emergency. You can also sell your electronics, such as tablets, large-screen TV, game consoles, phones, laptops, books, CDs, DVDs, among others, to get fast cash. Post them on your Twitter, Facebook, or Craigslist, so to reach your friends and family.

7. Arrange a Garage Sale

One person’s trash can be a treasure for another. A garage and yard sale can bring in a decent amount of money, but it requires a lot of work. Advertise on Facebook, Craigslist, church bulletins, and local newspaper (print and online) to bring more people to your sale.

8. Get an Odd Job

In case you don’t have high-priced items to sell, you can sell your services, particularly if you have sufficient time and out of work. You can earn some cash by doing odd jobs, like gardening, bookkeeping, etc.

If you love driving, you can also sign up to be an Uber or Lyft driver. You can shop for some groceries for your busy friend or paint and repair the dilapidated fence. You can earn money within a week depending upon how many jobs you can do and what amount you charge for each task. Try looking for such tasks online through websites like TaskRabbit.

9. Take Benefits of Government Policies

Government programs, such as Medicaid, may not be a beneficial option if you need quick cash, but it can help you in the long term when you are in a crisis. If you are laid off for quite some time, you may still have to pay your bills and other expenses. During such a financial crisis, you may avail of government policies, like unemployment benefits, until you find a new job.

Financial emergencies can be hard to deal with during any point of time in life. During such times, you may need quick cash to deal with the situation. So, follow the above-mentioned tips for an emergency fund to borrow the money you need.

Several loan options and other programs can help you get out of the financial crisis. When you look for borrowing money, consider options that offer minimum interest rates. Moreover, you should borrow the money only if you have a plan on how to make timely repayment so that you can pay back the amount on time and not indulge in extra fees or get trapped in a long-term debt cycle.

However, make sure to create an emergency fund formula for you, so you can save yourself from getting into debt during difficult times. When setting up an emergency fund, you can get advice from your accountant on how much emergency fund I should have to protect yourself during hard times.